Sarah Borders, CEBS February 1, 2023 3 min read

2023 Adjusted Penalty Amounts Released

The Department of Labor has issued the 2023 annual adjustments to penalties applicable to group health plan benefits. The 2023 amounts are effective for penalties assessed after January 15, 2023 for violations occurring after November 2, 2015.
Here are the revised penalties for 2023 applicable to health benefit plans:

  • Form 5500 - The maximum penalty for failing to file Form 5500 (which must be filed annually for most ERISA plans) increases from $2,400 to $2,586 per day that the filing is late.
  • Summary of Benefits and Coverage (SBC) - The maximum penalty for failing to provide the SBC increases from $1,264 to $1,362 per failure.
  • GINA violations, such as establishing eligibility rules based on genetic information or requesting genetic information for underwriting purposes increased from $127 to $137 daily per participant during the non-compliance period.
  • Failures relating to Medicaid or CHIP disclosures may result in penalties of $137 per participant per day, an increase from $127.
  • MEWA M-1 Filings. Penalties for failure to meet applicable filing requirements, which include annual Form M-1 filings and filings upon origination, increase from $1,746 to $1,881 per day.
  • Failure to provide requested information to DOL – Penalties for each failure to provide requested documentation have increased to $184 per day, not to exceed $1,846 per request.

Employers sponsoring group health plan benefits will need to be aware of potential penalties for various failures, and make necessary changes to avoid such penalties.
Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2023:


Sarah Borders, CEBS

Principal, Benefits Compliance Solutions. Sarah has spent the last 15 years in the employee benefits industry, has numerous designations and serves on NAHU’s Employer Working Group Subcommittee and is an active board member of Austin AHU. She recently stepped down as Vice President of Benefits Compliance at one of the nation's largest brokerage firms to start her own compliance consulting practice. Her designations include an active license with the Texas Department of Insurance, CEBS (Certified Employee Benefits Specialist), Certified Health Care Reform Professional, HIPAA certification and Health Care Service Associate. She holds an MBA from Texas A&M Corpus Christi and a BA from University of Incarnate Word. Her consulting firm, Benefits Compliance Solutions, partners with employers to identify unknown risks and avoid hundreds of thousands of dollars in fines and lawsuits from failure to comply with their healthplan obligations.