Arent Fox Partner Linda Baumann Comments on HHS Final

The Department of Health and Human Services (HHS) released  final regulations on the new federal civil monetary penalties (CMPs) that have been adjusted/increased to reflect inflation.

Health Care partner Linda Baumann noted that the "inflation adjustments to the CMPs vary widely, with the size of the increase largely related to when the CMP was first established."

However, many of the new CMPs are more than double what they were before, although some others increased only marginally. Linda noted that many health providers and suppliers would likely find this wide range of penalties confusing, if not overwhelming (and daunting because of the huge amounts of money potentially at issue).

As Linda pointed out, there is a chance that some of the new penalty amounts will lead to such enormous penalties that they may be challenged in court as being excessive.

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