Under which major health reform law does the Hospital Readmission Reduction Program operate?

• A. Affordable Care Act
• B. Medicaid Act
• C. Health Insurance Privacy Act
• D. Social Security Act

Answer: (A)

The Hospital Readmission Reduction Program is a policy created by the Affordable Care Act to reduce avoidable readmissions by penalizing hospitals with higher-than-expected 30-day readmission rates for certain conditions. It uses Medicare data to identify affected hospitals and lowers a portion of Medicare payments as a penalty, incentivizing better discharge planning, care coordination, and post-discharge support. Although Medicare itself is grounded in the Social Security Act, the authority to impose these readmission penalties was established specifically by the Affordable Care Act. The other laws listed do not authorize this program, since they address privacy (notreadmission penalties), or relate to Medicaid rather than Medicare.readmission penalties under Medicare.