eveloping into a major health issue in the United States. Problems associated with access to health care services will likely worsen significantly, before beginning to improve. The Medicare Catastrophic Coverage Act specifically addressed the access problem.
The Act was the greatest expansion of the Medicare pro gram since its inception in 1956. It was intended to shield elderly individuals from the high costs of extended illness or severe injury. The major benefits of the Act included the following:
1. A cap was placed on the out of pocket expenses of participants in the Medicare program for approved (a) hospital and physician care, (b) extended home health care, and (c) skilled nursing home care. The cap, under the Act, was tied to the cost of living, and was projected at $1,370 for 1990.
2. Broad coverage was provided for the first time under Medicare for prescription dru
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