1. Established by the Tax Equity and Fiscal Responsibility Act (TEFRA). This is a state-licensed health plan similar to a health maintenance organization (HMO) that delivers comprehensive, coordinated services to voluntary enrolled members on a prepaid, capitated basis. 2. CMP status may be granted by the federal government for the enrollment of Medicare beneficiaries into managed care plans, without having to qualify as an HMO. CMPs with Medicare contracts offer Medicare beneficiaries all services covered by fee-for-service Medicare. Medicare pays these plans on a monthly basis for each Medicare beneficiary. Medicare beneficiaries get all Medicare-covered hospital and medical insurance benefits through the plan. The CMP may also collect a premium from each Medicare member enrolled in the plan.