Catastrophic Home Care Benefits Demonstrations Act of 1988

Catastrophic Home Care Benefits Demonstrations Act of 1988 - Directs the Secretary of Health and Human Services to establish a 30-month demonstration program providing home care services to Medicare (title XVIII of the Social Security Act) beneficiaries who are unable to perform at least three of five specified basic functions of normal activity and are participating in a program which is to be conducted by the Secretary for overseeing the provision of such care.

Sets the maximum amount of payments that may be made for home care services at 75 percent of the average amount payable for skilled nursing facility services under the Medicaid program (title XIX of the Act). Establishes the formula for determining a home care services deductible. Covers 80 percent of the reasonable costs incurred by home care service providers.

Sets forth requirements for home health agencies which are participating in such demonstration program, including the requirements that such agencies: (1) meet Medicare home health agency requirements; (2) implement grievance review procedures for patients; (3) provide each patient with a written statement and a schedule of the services to be provided, as agreed upon by the patient; and (4) ensure that providers employed by or under contract with the agency are evaluated annually and properly trained.

Requires that the demonstration program: (1) be conducted in no fewer than five sites; (2) involve community outreach activities at each site to enroll the maximum number of Medicare beneficiaries; and (3) permit a variety of health care providers to furnish preventive health services. Sets forth program evaluation and reporting requirements. Authorizes appropriations for such program from the Federal Supplementary Medical Insurance Trust Fund established under part B (Supplementary Medical Insurance) of the Medicare program.

Directs the Secretary to establish a demonstration project testing the cost-effectiveness of requiring every State to provide Medicaid (title XIX of the Act) home care services to certain disabled children who would otherwise require institutionalization. Requires that such project be conducted for 30 months in five distinct geographic areas. Sets forth project evaluation and reporting requirements. Authorizes appropriations for such project from the Federal Supplementary Medical Insurance Trust Fund.