Question

For a health plan, what are the possible consequences of violations of ACA Section 1557?

a.None, although it may have to take corrective action.
b.Compensatory damages only.
c.Loss of federal business only.
d.Loss of federal business and compensatory damages.

Answer 1

Violations of ACA Section 1557 can result in the loss of federal funding and compensatory damages, leading to financial and reputational consequences for health plans.

Step-by-step explanation:

Violations of ACA Section 1557, which refers to the nondiscrimination provision of the Patient Protection and Affordable Care Act (ACA), can have significant consequences for a health plan. Entities covered by this section must not discriminate based on race, color, national origin, sex, age, or disability. If a health plan were found to be in violation of these rules, it could face the loss of federal funding, including Medicare and Medicaid dollars, which are a substantial source of revenue for many health care providers.

Additionally, entities may be subject to lawsuits and required to pay compensatory damages to individuals who were harmed by the discrimination. This might include not only monetary compensation for specific damages but also changes in the health plan’s policies and practices to ensure compliance going forward. Violations of the ACA can also lead to reputational harm affecting patient trust and market positioning.