The Consumer Appeal Rights Enforcement Act amends federal retirement and health plan laws to strengthen enforcement of how plans handle claims and appeals. The bill creates new civil penalties that the Department of Labor can impose on plans and administrators that violate claims procedures or external review requirements, whether through defective written procedures or failure to follow them in practice. Penalties for widespread failures called "global violations" can reach up to $1,000 per participant per year, potentially tripled if not corrected within 90 days. For individual violations affecting specific participants, penalties can reach up to $1,000 per day until corrected, with shorter correction timelines for health plans and urgent care claims. The bill also grants the Labor Department expanded direct enforcement authority and allows courts to impose these same penalties in private lawsuits, though prevents double penalties for the same violation. The changes take effect 90 days after enactment.
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