A health care plan, licensed by the state, which provides health care services to enrolled members on a prepaid, capitated basis. Most often used to refer to an entity (can be an HMO as well as a competitive medical plan) which has met certain requirements of the federal government to be designated as a competitive medical plan. A federally designated CMP is eligible for a risk contract with HCFA to provide Medicare services to Medicare beneficiaries. The requirements for CMP designation are not as strict as those for becoming federally qualified.