---
kind: "section"
citation: "42 C.F.R. § 411.103"
title: "42"
number: "411.103"
heading: "Prohibition against financial and other incentives."
url: "https://uscodex.org/cfr/42/411.103"
---

# §411.103. Prohibition against financial and other incentives.

- (a) **General rule.** An employer or other entity (for example, an insurer) is prohibited from offering Medicare beneficiaries financial or other benefits as incentives not to enroll in, or to terminate enrollment in, a GHP that is, or would be, primary to Medicare. This prohibition precludes offering to Medicare beneficiaries an alternative to the employer primary plan (for example, coverage of prescription drugs) unless the beneficiary has primary coverage other than Medicare. An example would be primary coverage through his own or a spouse's employer.
- (b) **Penalty for violation.**
  - (1) Any entity that violates the prohibition of [paragraph (a)](#a) of this section is subject to a civil money penalty of up to $5,000 as adjusted annually under [45 CFR part 102](/cfr/45/part102.md) for each violation; and
  - (2) The provisions of section 1128A of the Act (other than subsections [(a)](#a) and [(b)](#b)) apply to the civil money penalty of up to $5,000 as adjusted annually under [45 CFR part 102](/cfr/45/part102.md) in the same manner as the provisions apply to a penalty or proceeding under [section 1128A(a)](/cfr/42/1128A.md?p=a).

## Notes

### Amendments

[60 FR 45362, Aug. 31, 1995, as amended at 81 FR 61561, Sept. 6, 2016]

### Source

Source: 60 FR 45362, Aug. 31, 1995, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302, 1395w-101 through 1395w-152, 1395hh, and 1395nn.

### Source

Source: 54 FR 41734, Oct. 11, 1989, unless otherwise noted.

### Amendments

[60 FR 45362, Aug. 31, 1995, as amended at 81 FR 61561, Sept. 6, 2016]