What is the primary focus of the Tax Equity and Fiscal Responsibility Act (TEFRA) of 1986?

The Tax Equity and Fiscal Responsibility Act (TEFRA) of 1986 primarily aimed to enhance the quality of care within the Medicare program through the establishment of the Peer Review Organization (PRO) program. This program was designed to ensure that healthcare providers met certain standards of care and that the services provided to Medicare beneficiaries were medically necessary and of reasonable quality.

By implementing peer reviews, where healthcare providers would evaluate the services and practices of their colleagues, TEFRA sought to promote accountability and improve overall patient outcomes in the Medicare system. This focus on quality was crucial for maintaining the effectiveness of Medicare and ensuring that beneficiaries received appropriate and efficient healthcare services.

While strengthening Medicare pricing structures is important in the context of overall healthcare reform, it does not encapsulate the primary focus of TEFRA, which was more directly concerned with the quality of care through oversight and evaluation. The regulation of medical insurance premiums and improving access to home health services are also significant healthcare issues but were not the central aims of TEFRA. Instead, TEFRA's legacy remains closely tied to the mechanisms it put in place for quality assurance through peer review processes.