The Department of Labor has issued the 2024 annual adjustments to penalties applicable to group health plan benefits. The 2024 amounts are effective for penalties assessed after January 15, 2024 for violations occurring after November 2, 2015.
Who this applies to:
- Large employers with fully-insured and self-funded health plans, including ICHRAs
- Small employers with fully-insured and level-funded health plans, including ICHRAs
Go Deeper:
Here are the revised penalties for 2024 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 $2,589 to $2,670 per day that the filing is late.
- Summary of Benefits and Coverage (SBC) - The maximum penalty for failing to provide the SBC increases from $1,362 to $1,406 per failure.
- GINA violations, such as establishing eligibility rules based on genetic information or requesting genetic information for underwriting purposes increased from $137 to $141 daily per participant during non-compliance period.
- Failures relating to Medicaid or CHIP disclosures may result in penalties of $141 per participant per day, an increase from $137.
- 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 $1,881 to $1,942 per day.
- Failure to provide requested information to DOL – Penalties for each failure to provide requested documentation have increased to $190 per day, not to exceed $1,906 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 2024: https://www.federalregister.gov/documents/2024/01/11/2024-00253/federal-civil-penalties-inflation-adjustment-act-annual-adjustments-for-2024
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