Title V, SEC. 5412. CIVIL MONETARY PENALTIES. 
      (a) Actions Subject to Penalty. Any person who is determined by the 
    Secretary to have committed any of the following actions with respect to an 
    applicable health plan shall be subject to a penalty in accordance with 
    subsection (b): 

        (1) Actions subject to penalty under medicare, medicaid, and other 
      social security health programs. Any action that would subject the person 
      to a penalty under paragraphs (1) through (12) of section 1128A of the 
      Social Security Act if the action was taken with respect to title V, 
      XVIII, XIX or XX of such Act. 

        (2) Termination of enrollment. The termination of an individual's 
      enrollment (including the refusal to re-enroll an individual) in 
      violation of subtitle E of title I or State law. 

        (3) Discriminating on basis of medical condition. The engagement in any 
      practice that would reasonably be expected to have the effect of denying 
      or discouraging the initial or continued enrollment in a health plan by 
      individuals whose medical condition or history indicates a need for 
      substantial future medical services. 

        (4) Inducing enrollment on false pretenses. The engagement in any 
      practice to induce enrollment in an applicable health plan through 
      representations to individuals which the person knows or should know are 
      false or fraudulent. 

        (5) Providing incentives to enroll. The offer or payment of 
      remuneration to any individual eligible to enroll in an applicable health 
      plan that such person knows or should know is likely to influence such 
      individual to enroll in a particular plan. 

      (b) Penalties Described. 

        (1) General rule. Any person who the Secretary determines has committed 
      an action described in paragraphs (2) through (6) of subsection (a) shall 
      be subject to a civil monetary penalty in an amount not to exceed $50,000 
      for each such determination. 

        (2) Actions subject to penalties under social security act. In the case 
      of a person who the Secretary determines has committed an action 
      described in paragraph (1) of subsection (a), the person shall be subject 
      to the civil monetary penalty (together with any additional assessment) 
      to which the person would be subject under section 1128A of the Social 
      Security Act if the action on which the determination is based had been 
      committed with respect to title V, XVIII, XIX or XX of such Act. 

        (3) Determinations to exclude permitted. In addition to any civil 
      monetary penalty imposed under this subsection, the Secretary may make a 
      determination in the same proceeding to exclude the person from 
      participation in all applicable health plans for the delivery of or 
      payment for health care items or services (in accordance with section 
      5411(c)). 

      (c) Procedures for Imposition of Penalties. 

        (1) Applicability of procedures under social security act. Except as 
      otherwise provided in paragraphs (2) and (3), the provisions of 
      subsections (c), (d), (e), (g), (j), (k), and (l) of section 1128A of the 
      Social Security Act shall apply with respect to the imposition of 
      penalties under this section in the same manner as such provisions apply 
      with respect to the imposition of civil monetary penalties under section 
      1128A of such Act. 

        (2) Limitation on time for attorney general to act. The first sentence 
      of section 1128A(c) of the Social Security Act shall be applied with 
      respect to civil monetary penalties under this section as if the 
      reference in such section to ``one year'' was a reference to ``60 days''. 

        (3) Authority of states to impose penalties. If no proceeding to impose 
      a civil monetary penalty under this section with respect to actions 
      relating to a regional alliance health plan has been initiated (by either 
      the Attorney General or the Secretary) within 120 days after the 
      Secretary presents a case to the Attorney General for consideration of 
      the imposition of such a penalty, the State in which the alliance is 
      located may initiate proceedings to impose a civil monetary penalty under 
      this section with respect to the action in the same manner as the 
      Secretary may initiate such proceedings. 

      (d) Treatment of Amounts Recovered. Any amounts recovered under this 
    section shall be paid to the Secretary and disposed of as follows: 

        (1) Such portions of the amounts recovered as is determined to have 
      been improperly paid from an applicable health plan for the delivery of 
      or payment for health care items or services shall be repaid to such 
      plan. 

        (2) The remainder of the amounts recovered shall be deposited in the 
      All-Payer Health Care Fraud and Abuse Control Account established under 
      section 5402. 

      (e) Notification of Licensing Authorities. Whenever the Secretary's 
    determination to impose a penalty, assessment, or exclusion under this 
    section becomes final, the Secretary shall notify the appropriate State or 
    local licensing agency or organization (including the agency specified in 
    section 1864(a) and 1902(a)(33) of the Social Security Act) that such a 
    penalty, assessment, or exclusion has become final and the reasons 
    therefor.