What are possible consequences of violations of ACA Section 1557 for a health plan?

• A. Loss of federal business and compensatory damages
• B. Civil penalties only
• C. Imprisonment of executives
• D. No penalties

Answer: (A)

Section 1557 prohibits discrimination in health programs and activities funded or administered by the federal government. When a health plan runs afoul of this rule, enforcement can involve both stopping or losing federal business and awarding damages to those harmed. The regulators can terminate or suspend federal funds or contracts for noncompliance, and affected individuals may pursue remedies that include compensatory damages in appropriate proceedings. That combination—losing federal funding or contracts and potential compensatory damages—best captures the realistic consequences a health plan could face under 1557.

Civil penalties can occur, but stating them as the only consequence misses the broader enforcement landscape. Imprisonment isn’t a typical remedy in civil rights enforcement against health plans, and saying there are no penalties is inaccurate.