26 U.S.C. § 6720C — Penalty for failure to notify health plan of cessation of eligibility for continuation coverage premium assistance
submitted 5 years ago by Pub. L. 117-2 to r/title-26-INTERNAL-REVENUE-CODE · 154 words · no verdicts yet
A person who must notify a group health plan that eligibility for continuation-coverage premium assistance ended owes $250 for each failure. A fraudulent failure has a larger possible penalty, while reasonable cause and no willful neglect are an exception.
(a) Except for failures covered by (b) or (c), a person required by section 9501(a)(2)(B) of the American Rescue Plan Act of 2021 to notify a group health plan who fails to notify it at the time and in the manner the Labor Secretary* requires must pay $250 for each failure.
(b) For a fraudulent failure, the penalty is the greater of (1) $250 or (2) 110 percent of premium assistance paid under section 9501(a)(1)(A) after eligibility ended.
(c) No penalty applies if the failure is shown to result from reasonable cause and not willful neglect.
Except in the case of a failure described in subsection (b) or (c), any person required to notify a group health plan under section 9501(a)(2)(B) of the American Rescue Plan Act of 2021 who fails to make such a notification at such time and in such manner as the Secretary* of Labor may require shall pay a penalty of $250 for each such failure.
In the case of any such failure that is fraudulent, such person shall pay a penalty equal to the greater of—
$250, or
110 percent of the premium assistance provided under section 9501(a)(1)(A) of the American Rescue Plan Act of 2021 after termination of eligibility under such section.
No penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause and not to willful neglect.
Source credit: (Added Pub. L. 117–2, title IX, § 9501(b)(2)(A), Mar. 11, 2021, 135 Stat. 137.)
- 2021Enacted · Pub. L. 117-2 · 135 Stat. 137
A history note hasn’t been published yet. The record shows enactment by Pub. L. 117-2 on 2021-03-11.
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