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Affordability board tables vote on data-submission penalties after lawmakers, advocates call for steeper fines
Summary
The Health Care Affordability Board paused a final vote on a staff proposal that would have assessed a $5 per-member penalty for failure to submit required data, after board members and public commenters argued the figure is too small to deter noncompliance and asked staff to return with revised options in November.
The Health Care Affordability Board on Oct. 17 declined to finalize a proposed penalty schedule for health-plan data submissions and asked staff to return with a revised recommendation at the board's November meeting.
Assistant Deputy Director CJ Howard outlined a multi-step penalty approach staff proposed: two flat untimely-submission fines ($10,000 and $50,000) followed by a per-member failure-to-submit penalty of $5 in the first noncompliant year that would double in each subsequent year the submitter failed to comply. Staff said the first per-member penalty would be applied in December if a data submitter had not provided the complete files and that the per-member amount would be made public when assessed.
Board members and public commenters pushed back on the proposed $5-per-member figure as too low. "If plans can treat the penalty as a cost of doing business,…
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