The Medicare Catastrophic Coverage Act of 1988 (MCCA)
The Medicare Catastrophic Coverage Act of 1988 (MCAA) was a government bill designed to improve acute care benefits for the elderly and disabled, which was to be phased in from 1989 to 1993. The Medicare Catastrophic Coverage Act of 1988 was meant to expand Medicare benefits to include outpatient drugs and limit enrollees' copayments for covered services. The Medicare Catastrophic Coverage Act of 1988 (MCAA) was a government bill designed to improve acute care benefits for the elderly and disabled, which was to be phased in from 1989 to 1993. Medicare tax is similar to Social Security tax, which is also taken out of employees’ paychecks. Medicare is a complex and weighty federal program that taxpayers help pay for with Medicare wages.
What Is the Medicare Catastrophic Coverage Act of 1988?
Understanding the Medicare Catastrophic Coverage Act of 1988 (MCCA)
One reason the bill failed was the lack of comprehensive information and clear communication in promoting this iteration in U.S. healthcare reform. The widespread misunderstanding of payment plans led to distrust and pushback against the bill.
MCCA and Medicare Wages
Medicare is a complex and weighty federal program that taxpayers help pay for with Medicare wages. These are generally taken out of the paychecks of U.S. employees on a regular basis. Controllers and individuals withhold a percentage from annual income.
For 2021, the Medicare tax rate is 1.45% for the employee and 1.45% for the employer, or a total of 2.9%. Employers are responsible for withholding the 0.9% Additional Medicare Tax on an employee's wages that exceed $200,000 in a calendar year, regardless of filing status. There's no employer match for Additional Medicare Tax.
Medicare tax is similar to Social Security tax, which is also taken out of employees’ paychecks. For 2021, the Social Security tax is 6.2% on the first $142,800 of wages. Employers also pay a 6.2% tax on behalf of employees. The Social Security tax rate is assessed on all types of income that an employee earns, including salaries, wages, and bonuses.
Related terms:
Medicare
Medicare is a U.S. government program providing healthcare insurance to individuals 65 and older or those under 65 who meet eligibility requirements. read more
Medicare Wages
Medicare wages are employee earnings that are subject to a U.S. payroll tax known as the Medicare tax. read more
Payroll Deduction Plan
A payroll deduction plan is when an employer withholds money from an employee's paycheck, most commonly for employee benefits and taxes. read more
Payroll Tax : Overview & Examples
A payroll tax is a percentage withheld from an employee's salary and paid to a government to fund public programs. Learn more about payroll taxes here. read more
Social Security Act
The Social Security Act established a benefits system for people who are retired, jobless, or have a disability. A payroll tax funds these benefits. read more
Social Security Tax
This tax, levied on both employers and employees, funds Social Security and is collected in the form of a payroll tax or a self-employment tax. read more
Social Security
Social Security is a federally run insurance program that provides benefits to many American retirees, their survivors, and workers who become disabled. read more
Taxable Wage Base
The taxable wage base is the maximum amount of earned income that employees must pay Social Security taxes on. read more