Which act provided a financial incentive for states to enact laws against healthcare fraud and abuse?

The Deficit Reduction Act (DRA) is recognized for providing financial incentives to states to develop and implement laws aimed at combating healthcare fraud and abuse. Enacted in 2005, the DRA includes provisions that encouraged states to establish effective anti-fraud measures by offering federal matching funds to support their initiatives.

This act emphasized the importance of tackling fraud and abuse within Medicaid programs, promoting stronger oversight and accountability. By leveraging financial resources, the DRA aimed to improve the integrity of healthcare programs and ensure that taxpayer dollars were protected from fraudulent activities.

In contrast, other acts mentioned in the options focus on different aspects of healthcare policy and reform. The Health Insurance Portability Act primarily addresses the protection of health information and patient privacy, while the Medicare Prescription Drug Improvement and Modernization Act focuses on the establishment of Medicare Part D. The Affordable Care Act, meanwhile, introduced extensive healthcare reforms but did not specifically target financial incentives for states concerning fraud and abuse. Therefore, the DRA stands out clearly as the legislation directly linked to promoting state-level laws to combat healthcare fraud.