Civil Monetary Penalty Inflation Adjustment
Published Date: 1/15/2025
Rule
Summary
The Department of Defense is raising its civil penalty fines to keep up with inflation, making sure the penalties stay fair and effective. This change affects anyone who might face DoD fines and kicks in starting January 15, 2025. Penalties will be adjusted yearly based on the cost of living, so the fines won’t lose their punch over time.
Analyzed Economic Effects
4 provisions identified: 0 benefits, 4 costs, 0 mixed.
DoD civil penalties rise with CPI
If you could be fined by the Department of Defense, the maximum civil monetary penalties it can assess were increased using an OMB multiplier of 1.02598 and are effective January 15, 2025. DoD will adjust its penalties each year by the October-to-October Consumer Price Index (CPI) change and round to the nearest dollar, with the annual adjustment required by January 15 each year.
Higher penalties for health-care false claims
If you submit or are involved in false claims related to health-care programs that fall under 42 U.S.C. 1320a-7a, several maximum penalties increased effective January 15, 2025 — for example, some penalty maxima rose from $124,731 to $127,972 and several from $24,946 to $25,594. These adjusted maxima apply to CMPs assessed by the DoD after the effective date.
Unauthorized activities penalty increased
The maximum penalty for 'Unauthorized Activities Directed at or Possession of Sunken Military Craft' under the National Defense Authorization Act note increased from $161,168 to $165,355, effective January 15, 2025. That new maximum applies to DoD-assessed penalties after the effective date.
Higher fines for wrongful medical-record disclosures
Penalties for wrongful disclosure of medical records under 10 U.S.C. 1102(k) increased effective January 15, 2025 — first-offense maximum rose from $8,368 to $8,586 and subsequent-offense maximum rose from $55,788 to $57,237. The adjusted amounts apply to penalties assessed by DoD after the effective date.
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