# Penalty for any nonparticipating physician who does not accept payment on an assignment-related basis and who knowingly and willfully fails to refund on a timely basis any amounts collected for services that are not reasonable or medically necessary or are of poor quality under 1842(l)(1)(A). (Penalties are assessed in the same manner as 42 U.S.C. 1395u(j)(2)(B) , which is assessed according to 1320a-7a(a)) — Federal civil penalty maximums — current inflation-adjusted amounts across agencies

For Penalty for any nonparticipating physician who does not accept payment on an assignment-related basis and who knowingly and willfully fails to refund on a timely basis any amounts collected for services that are not reasonable or medically necessary or are of poor quality under 1842(l)(1)(A). (Penalties are assessed in the same manner as 42 U.S.C. 1395u(j)(2)(B) , which is assessed according to 1320a-7a(a)), agency is HHS; statutory authority is 1395u(l)(3); maximum penalty is 19,940, recorded from its source on 2026-08-10.

- **Agency:** HHS _(our reading, not quoted from the source)_
- **Violation:** Penalty for any nonparticipating physician who does not accept payment on an assignment-related basis and who knowingly and willfully fails to refund on a timely basis any amounts collected for services that are not reasonable or medically necessary or are of poor quality under 1842(l)(1)(A). (Penalties are assessed in the same manner as 42 U.S.C. 1395u(j)(2)(B) , which is assessed according to 1320a-7a(a)) _(verified: appears in the quote below)_
- **Statutory authority:** 1395u(l)(3) _(verified: appears in the quote below)_
- **Maximum penalty:** 19,940 _(verified: appears in the quote below)_

## What the source says

> 1395u(l)(3) | <https://www.ecfr.gov/current/title-42/section-402.1#p-402.1(c)(13)> 42 CFR 402.1(c)(13) , <https://www.ecfr.gov/current/title-42/section-402.105#p-402.105(d)(2)(x)> 402.105(d)(2)(x) | CMS | Penalty for any nonparticipating physician who does not accept payment on an assignment-related basis and who knowingly and willfully fails to refund on a timely basis any amounts collected for services that are not reasonable or medically necessary or are of poor quality under 1842(l)(1)(A). (Penalties are assessed in the same manner as <https://www.govinfo.gov/link/uscode/42/1395u> 42 U.S.C. 1395u(j)(2)(B) , which is assessed according to 1320a-7a(a)) | 2024 | 19,435 | 19,940

## Source

- https://www.ecfr.gov/current/title-45/subtitle-A/subchapter-A/part-102/section-102.3

Last verified: 2026-08-10. Review by: 2027-02-26.
Part of [Federal civil penalty maximums — current inflation-adjusted amounts across agencies](https://referencesource.org/federal-civil-penalty-maximums/).