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Question 1: The Balanced Budget Act (BBA) of 1997 created the Medicare+Choice plan. One provision of theBBA under Medicare+Choice is that the BBA
A. Requires health plans to qualify as either a competitive medical plan (CMP) or a federally qualified
HMO in order to participate in the Medicare program
B. Eliminates funding for demonstration projects such as the Medicare Enrollment Demonstration
Project
C. Narrows the geographic variations in payments to Medicare health plans by lowering the growth
rate of payments in high-payment counties and raising the rates in low-payment counties
D. Increases Graduate Medical Education (GME) payments to hospitals for the training and cost of
educating and training residents
Correct Answer: C
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