The September 6, 2016 Federal Register includes the Department of Health and Human Service (HHS) Interim Final Rule regarding the adjustment of Civil Monetary Penalties for inflation. This new regulation ensures that the amount of CMPs issued by CMS and other agencies is appropriately adjusted for inflation.
The adjusted Civil Monetary Penalty amounts apply to:
- Penalties assessed after August 1, 2016 for violations that occurred after November 2, 2015
This means that for violations that occurred on or before November 2, 2015 related to assessments made before August 1, 2016, the CMP levels remain as they were. However, for the new CMPs, providers should take careful notice of the per instance and per day penalty increases associated with Remedy Categories for specific levels of non-compliance with regulations identified during a survey. These CMPs have all increased by 106.278%. That means the minimum and maximum penalties look like this before and after the adjustment for inflation:
Category 2
- Category 2 noncompliance per day penalty:
- Previous: $50-$3,000
- Current: $103-$6,188
- Category 2 noncompliance per instance penalty:
- Previous: $1,000-$10,000
- Current: $2,063-$20,628
Category 3
- Category 3 noncompliance per day penalty:
- Previous: $3,050-10,000
- Current: $6,291-$20,628
- Category 3 noncompliance per instance penalty:
- Previous: $1,000-$10,000
- Current: $2,063-$20,628
- Category 3 noncompliance with Immediate Jeopardy per day penalty:
- Previous: $3,050-$10,000
- Current: $6,291-$20,628
- Category 3 noncompliance with Immediate Jeopardy per instance penalty:
- Previous: $1,000-$10,000
- Current: $2,063-$20,628
That’s a significant increase in potential monetary penalties. Read the Federal Register to see the full list of penalty increases. Need help ensuring the quality of care being provided is compliant with regulations? Contact CMS Compliance Group today to learn more
