---
kind: "section"
citation: "45 C.F.R. § 150.305"
title: "45"
number: "150.305"
heading: "Determination of entity liable for civil money penalty."
url: "https://uscodex.org/cfr/45/150.305"
---

# §150.305. Determination of entity liable for civil money penalty.


If a failure to comply is established under this part, the responsible entity, as determined under this section, is liable for any civil money penalty imposed.

- (a) **Health insurance issuer is responsible entity—**
  - (1) **Group health insurance policy.** To the extent a group health insurance policy issued, sold, renewed, or offered to a private plan sponsor or a non-Federal governmental plan sponsor is subject to applicable PHS Act requirements, a health insurance issuer is subject to a civil money penalty, irrespective of whether a civil money penalty is imposed under paragraphs [(b)](#b) or [(c)](#c) of this section, if the policy itself or the manner in which the policy is marketed or administered fails to comply with an applicable PHS Act requirement.
  - (2) **Individual health insurance policy.** To the extent an individual health insurance policy is subject to an applicable PHS Act requirement, a health insurance issuer is subject to a civil money penalty if the policy itself, or the manner in which the policy is marketed or administered, violates any applicable PHS Act requirement.
- (b) **Non-Federal governmental plan is responsible entity—**
  - (1) **Basic rule.** If a non-Federal governmental plan is sponsored by two or more employers and fails to comply with an applicable PHS Act requirement, the plan is subject to a civil money penalty, irrespective of whether a civil money penalty is imposed under [paragraph (a)](#a) of this section. The plan is the responsible entity irrespective of whether the plan is administered by a health insurance issuer, an employer sponsoring the plan, or a third-party administrator.
  - (2) **Exception.** In the case of a non-Federal governmental plan that is not provided through health insurance coverage, this [paragraph (b)](#b) does not apply to the extent that the non-Federal governmental employers have elected under [§ 146.180](/cfr/45/146.180.md) to exempt the plan from applicable PHS Act requirements.
- (c) **Employer is responsible entity—**
  - (1) **Basic rule.** If a non-Federal governmental plan is sponsored by a single employer and fails to comply with an applicable PHS Act requirement, the employer is subject to a civil money penalty, irrespective of whether a civil money penalty is imposed under [paragraph (a)](#a) of this section. The employer is the responsible entity irrespective of whether the plan is administered by a health insurance issuer, the employer, or a third-party administrator.
  - (2) **Exception.** In the case of a non-Federal governmental plan that is not provided through health insurance coverage, this [paragraph (c)](#c) does not apply to the extent the non-Federal governmental employer has elected under [§ 146.180](/cfr/45/146.180.md) to exempt the plan from applicable PHS Act requirements.
- (d) **Actions or inactions of agent.** A principal is liable for penalties assessed for the actions or inactions of its agent.

## Notes

### Amendments

[64 FR 45795, Aug. 20, 1999, as amended at 78 FR 13440, Feb. 27, 2013; 86 FR 24286, May 5, 2021]

### Authority

Authority: 42 U.S.C. 300gg through 300gg-63, 300gg-91, and 300gg-92, as amended.

### Source

Source: 64 FR 45795, Aug. 20, 1999, unless otherwise noted.

### Amendments

[64 FR 45795, Aug. 20, 1999, as amended at 78 FR 13440, Feb. 27, 2013; 86 FR 24286, May 5, 2021]