Which legislation created Medicare risk programs allowing certain health plans to provide Medicare-covered services under a risk contract?

The legislation that created Medicare risk programs allowing certain health plans to provide Medicare-covered services under a risk contract is the Tax Equity and Fiscal Responsibility Act (TEFRA). This act, enacted in 1982, was pivotal in establishing the framework for Medicare risk contracting, where private health plans could receive capitated payments to cover the healthcare services of Medicare beneficiaries.

This approach enabled Medicare to leverage private sector health plans, introducing the concept of managed care into the Medicare program. As a result, health plans could take on the financial risk of providing services, which encouraged innovation in care management and allowed plans to offer additional benefits beyond traditional Medicare.

In contrast, the other legislative options listed either provided unrelated provisions concerning Medicare or focused on different aspects of healthcare regulations. For instance, the Medicare Improvements for Patients and Providers Act (MMA), while related to Medicare, primarily addressed payment reforms and improvements in services rather than establishing risk contracts directly. Similarly, the Benefits Improvement and Protection Act (BIPA) emphasized adjustments and enhancements to Medicare benefits rather than introducing the risk contracting aspect introduced by TEFRA. The Federal Employees' Compensation Act (FECA) deals exclusively with workers’ compensation for federal employees, separate from Medicare regulations.