The Nation - News from Dec. 13, 1988

Sixteen members of Congress asked President Reagan to delay implementation of the new catastrophic health insurance law so the government can explore ways to ease the program’s tax burden on the elderly. The measure seeks to protect Medicare beneficiaries from catastrophic costs by limiting patient payments for hospital care, doctors’ bills and other services under the acute-care program. The catastrophic program is to be financed by a two-tiered progressive surtax on the income of Medicare beneficiaries. Those 60% of beneficiaries who owe the least income tax would pay $48 next year, rising to $122 a year in 1993. The more affluent 40% could be required to pay $800 in 1989 and up to $1,050 four years later.