The Medicare Catastrophic Coverage Act of 1988 Reasons For Its Premature Failure

At the time of its passage, the Medicare Reimbursement Act of 1988 was hailed as a major improvement in health care funding for the elderly. However, within a year the Act had been repealed largely through the efforts of the elderly citizens in was designed to benefit. This paper examines the problems associated with the funding methods used in this program. It suggests that interaction of the tax surcharge contained in it with other tax provision affecting the elderly made the effects of the law especially objectionable and that future programs for funding national health care program must avoid these effects if they are to succeed.