Which system enacted by TEFRA issues a predetermined payment for inpatient services?

The system enacted by TEFRA (Tax Equity and Fiscal Responsibility Act) that issues a predetermined payment for inpatient services is known as Diagnosis-Related Groups (DRGs). This classification system was intended to streamline the reimbursement process for hospitals by categorizing inpatient stays into groups that are clinically similar, allowing for more predictable payment amounts based on the diagnosis rather than the specific services provided.

Under the DRG system, each group is associated with a specific payment amount, which means that hospitals are reimbursed a fixed amount for a patient’s care based on the DRG assigned at the time of discharge. This approach helps control costs and encourages hospitals to reduce unnecessary services, as they benefit financially by managing resources more efficiently.

Other answer choices, such as HCPCS level II, CPT, and ICD-9-CM, serve different purposes in medical coding and billing. HCPCS level II includes codes for non-physician services, CPT codes are used primarily for outpatient services and procedures, and ICD-9-CM is mainly used for diagnosis coding. While these systems play critical roles in the billing process, they do not specifically set predetermined payments for inpatient hospital services like DRGs do.