For a health plan, which are possible consequences of violating ACA Section 1557 nondiscrimination protections?

• A. Loss of federal business and compensatory damages
• B. Increased profits
• C. Public recognition
• D. No action

Answer: (A)

Violations of ACA Section 1557 nondiscrimination protections are enforcement actions that can have real, financial consequences for a health plan. Section 1557 bars discrimination based on protected characteristics in health programs and activities that receive federal funds or are administered by the federal government. When a plan breaches these protections, authorities such as the Office for Civil Rights can impose remedies that often include loss of federal funding or federal business and the potential for compensatory damages to harmed individuals. This makes the financial penalties and remedies a direct consequence of noncompliance.

The other options don’t reflect typical enforcement outcomes. Increased profits is not a penalty and would not be a consequence of violating nondiscrimination rules. Public recognition is not a punitive or corrective action aligned with enforcement. No action would ignore the formal enforcement mechanisms in place for civil rights violations.