The Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982 allowed competitive medical plans (CMPs)...

Vendor: AHIP
Product: AHM-530
Update on: Oct 14, 2025
Questions: 202

AHIP AHM-530 Question Answer

The Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982 allowed competitive medical plans (CMPs) to participate in the Medicare program on a risk basis. Under the terms of Medicare risk contracts, CMPs were required to deliver all medically necessary Medicare-covered services in return for a

fixed monthly capitation payment from CMS

fee-for-service payment from the appropriate state Medicare agency

mandatory premium paid by plan enrollees

fee equal to twice the actuarial value of the Medicare deductible and coinsurance paid by plan enrollees