26 U.S.C. § 6720C | Penalty for failure to notify health plan of cessation of eligibility for continuation coverage premium assistance

(a)

In general

Except in the case of a failure described in subsection (b) or (c), any person required to notify a group health plan under section 9501(a)(2)(B) of the American Rescue Plan Act of 2021 who fails to make such a notification at such time and in such manner as the Secretary of Labor may require shall pay a penalty of $250 for each such failure.

(b)

Intentional failure

In the case of any such failure that is fraudulent, such person shall pay a penalty equal to the greater of—

(1)

$250, or

(2)

110 percent of the premium assistance provided under section 9501(a)(1)(A) of the American Rescue Plan Act of 2021 after termination of eligibility under such section.

(c)

Reasonable cause exception

No penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause and not to willful neglect.

Pub. L. 117–2, title IX, § 9501(b)(2)(A)Mar. 11, 2021135 Stat. 137 (Added , , .)

Editorial Notes

References in Text

section 9501(a) of title IX of Pub. L. 117–2Mar. 11, 2021135 Stat. 127 section 4980B of this titleSection 9501(a) of the American Rescue Plan Act of 2021, referred to in subsecs. (a) and (b)(2), is , , , which is set out as a note under .

Prior Provisions

Pub. L. 111–5, div. B, title III, § 3001(a)(13)(A)Feb. 17, 2009123 Stat. 464 Pub. L. 111–144, § 3(b)(5)(D)Mar. 2, 2010124 Stat. 45 Pub. L. 115–141, div. U, title IV, § 401(d)(7)(B)Mar. 23, 2018132 Stat. 1212 A prior section 6720C, added , , ; amended , , , related to penalty for failure to notify health plan of cessation of eligibility for COBRA premium assistance, prior to repeal by , , .