Penalties associated with not offering appropriate coverage (the $2,000 penalty) or not offering affordable coverage (the $3,000 penalty), what can get overlooked is the myriad of "daily" penalties that come with non-compliance. Take the October 1 exchange notice requirement as an example. While the regulations do not identify a specific penalty for failing to comply with the notice requirement, PPACA has a $100 a day general "non-compliance" penalty. This general penalty requires employers to correct compliance failures within 30 days of discovery or self-report a $100 a day penalty for failing to comply on IRS Form 8928 for each day the employer failed to comply with a PPACA mandate. So failing to provide notices can get expensive.
Some other $100-a-day-penalties:
- Violating the non-discrimination rules (when they are finally written for insured plans)
- Violating the limits restrictions
- Failing to extend coverage to dependents to age 26
- Having retroactive rescission of benefits
- Failing to cover preventative care
- Failing to have a revised appeal process (including external appeals)
- Failing to provide timely notices
- Violating the restrictions on emergency room visits
- Violating restrictions on designation of primary care physicians
- Improper pre-existing condition exclusions
- Having excessive out-of-pocket costs
- Violations of the 90-day waiting period limit
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