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Code of Federal Regulations Title 42. Public Health § 42.411.103 Prohibition against financial and other incentives

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(a) General rule. An employer or other entity (for example, an insurer) is prohibited from offering Medicare beneficiaries financial or other benefits as incentives not to enroll in, or to terminate enrollment in, a GHP that is, or would be, primary to Medicare. This prohibition precludes offering to Medicare beneficiaries an alternative to the employer primary plan (for example, coverage of prescription drugs) unless the beneficiary has primary coverage other than Medicare. An example would be primary coverage through his own or a spouse's employer.

(b) Penalty for violation.

(1) Any entity that violates the prohibition of paragraph (a) of this section is subject to a civil money penalty of up to $5,000 as adjusted annually under 45 CFR part 102 for each violation;  and

(2) The provisions of section 1128A of the Act (other than subsections (a) and (b)) apply to the civil money penalty of up to $5,000 as adjusted annually under 45 CFR part 102 in the same manner as the provisions apply to a penalty or proceeding under section 1128A(a).

Cite this article: FindLaw.com - Code of Federal Regulations Title 42. Public Health § 42.411.103 Prohibition against financial and other incentives - last updated October 03, 2022 | https://codes.findlaw.com/cfr/title-42-public-health/cfr-sect-42-411-103/


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