Page:United States Statutes at Large Volume 124.djvu/178

 124 STAT. 152 PUBLIC LAW 111–148—MAR. 23, 2010 ‘‘(ii) a standard (as described under subsection (a)(1)(B)) and associated operating rules (as described under subsection (i)(5)) for any other financial and administrative transactions. ‘‘(B) FEE AMOUNT.—Subject to subparagraphs (C), (D), and (E), the Secretary shall assess a penalty fee against a health plan in the amount of $1 per covered life until certification is complete. The penalty shall be assessed per person covered by the plan for which its data systems for major medical policies are not in compliance and shall be imposed against the health plan for each day that the plan is not in compliance with the requirements under subsection (h). ‘‘(C) ADDITIONAL PENALTY FOR MISREPRESENTATION.— A health plan that knowingly provides inaccurate or incom- plete information in a statement of certification or docu- mentation of compliance under subsection (h) shall be sub- ject to a penalty fee that is double the amount that would otherwise be imposed under this subsection. ‘‘(D) ANNUAL FEE INCREASE.—The amount of the pen- alty fee imposed under this subsection shall be increased on an annual basis by the annual percentage increase in total national health care expenditures, as determined by the Secretary. ‘‘(E) PENALTY LIMIT.—A penalty fee assessed against a health plan under this subsection shall not exceed, on an annual basis— ‘‘(i) an amount equal to $20 per covered life under such plan; or ‘‘(ii) an amount equal to $40 per covered life under the plan if such plan has knowingly provided inac- curate or incomplete information (as described under subparagraph (C)). ‘‘(F) DETERMINATION OF COVERED INDIVIDUALS.—The Secretary shall determine the number of covered lives under a health plan based upon the most recent statements and filings that have been submitted by such plan to the Securities and Exchange Commission. ‘‘(2) NOTICE AND DISPUTE PROCEDURE.—The Secretary shall establish a procedure for assessment of penalty fees under this subsection that provides a health plan with reasonable notice and a dispute resolution procedure prior to provision of a notice of assessment by the Secretary of the Treasury (as described under paragraph (4)(B)). ‘‘(3) PENALTY FEE REPORT.—Not later than May 1, 2014, and annually thereafter, the Secretary shall provide the Sec- retary of the Treasury with a report identifying those health plans that have been assessed a penalty fee under this sub- section. ‘‘(4) COLLECTION OF PENALTY FEE.— ‘‘(A) IN GENERAL.—The Secretary of the Treasury, acting through the Financial Management Service, shall administer the collection of penalty fees from health plans that have been identified by the Secretary in the penalty fee report provided under paragraph (3). ‘‘(B) NOTICE.—Not later than August 1, 2014, and annually thereafter, the Secretary of the Treasury shall Deadline.