42 CFR § 438.704 - Amounts of civil money penalties.

---
identifier: "/us/cfr/t42/s438.704"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "42 CFR § 438.704 - Amounts of civil money penalties."
title_number: 42
title_name: "Public Health"
section_number: "438.704"
section_name: "Amounts of civil money penalties."
chapter_name: "CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "C"
subchapter_name: "MEDICAL ASSISTANCE PROGRAMS"
part_number: "438"
part_name: "MANAGED CARE"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 1302."
regulatory_source: "67 FR 41095, June 14, 2002, unless otherwise noted."
cfr_part: "438"
---


# 438.704 Amounts of civil money penalties.

(a) *General rule.* If the State imposes civil monetary penalties as provided under § 438.702(a)(1), the maximum civil money penalty the State may impose varies depending on the nature of the MCO's, PCCM or PCCM entity's action or failure to act, as provided in this section.

(b) *Specific limits.* (1) The limit is $25,000 for each determination under § 438.700(b)(1), (5), (6), and (c).

(2) The limit is $100,000 for each determination under § 438.700(b)(3) or (4).

(3) The limit is $15,000 for each beneficiary the State determines was not enrolled because of a discriminatory practice under § 438.700(b)(3). (This is subject to the overall limit of $100,000 under paragraph (b)(2) of this section).

(c) *Specific amount.* For premiums or charges in excess of the amounts permitted under the Medicaid program, the maximum amount of the penalty is $25,000 or double the amount of the excess charges, whichever is greater. The State must deduct from the penalty the amount of overcharge and return it to the affected enrollees.