New York Child Abuse Identification and Reporting Practice Exam

Which of the following amends the Social Security Act to make Medicare secondary to group health plans?

1. HIPAA

2. COBRA

3. TEFRA

4. PPACA

The correct answer is: TEFRA

The amendment of the Social Security Act to make Medicare secondary to group health plans is addressed by TEFRA, which stands for the Tax Equity and Fiscal Responsibility Act of 1982. TEFRA introduced provisions that clarify the roles of Medicare and group health plans, specifically ensuring that Medicare will only pay for healthcare costs after the group health plan has made its payments. This reflects a shift in how these programs interact, allowing for more comprehensive coverage under group health plans before Medicare benefits are applied. This legislation was significant as it aimed to reduce federal spending on Medicare by encouraging other available group health insurance coverage to be utilized first. Understanding TEFRA is essential for those working with Medicare and group health insurance, as it establishes fundamental guidelines regarding their relationship. The other legislative options mentioned—HIPAA, COBRA, and PPACA—address different aspects of health care and insurance regulation but do not specifically amend the Social Security Act in the context of Medicare's relationship with group health plans. HIPAA focuses on privacy and the security of health data, COBRA facilitates the continuation of health insurance coverage after employment, and PPACA, also known as the Affordable Care Act, reforms many aspects of health care and insurance but does not relate directly to the Medicare group health