Medicare:

Employer Insurance Primary Payer for 11 Percent of Disabled Beneficiaries

HRD-90-79: Published: May 10, 1990. Publicly Released: May 10, 1990.

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Pursuant to a legislative requirement, GAO determined the number of beneficiaries for whom Medicare became the secondary payer because of their own or a family member's employment.

GAO found that during 1988, the Omnibus Budget Reconciliation Act of 1986 made Medicare the secondary payer for 340,000 disabled beneficiaries, which consisted of: (1) 214,000 persons that had health insurance coverage through a family member's large group health plan (LGHP); (2) 26,000 persons that were in trial work programs, or had extended eligibility, and had health insurance coverage through their employer's LGHP; and (3) 100,000 persons that were on disability leave, but had employee status and also were covered by employer-sponsored LGHP.

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