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CMS Extends Time Frame for Publication of Section 111 Regulations By One Year

On February 22, 2023, CMS is publishing a notice in the Federal Register announcing a one year extension in the time frame for publication of the final regulations on situations in which civil monetary penalties may be imposed for noncompliance with Section 111 reporting requirements. CMS was previously scheduled to issue final regulations by February 18, 2023, three years from the date of publication of the proposed regulations. Now, CMS is scheduled to issue final regulations by February 18, 2024.

Under federal law, CMS was under a three year time line for issuing final regulations absent exceptional circumstances. CMS found that exceptional circumstances exist for the following reasons stated in the notice:

We are not able to meet the initial targeted 3-year timeline for publication due to delays related to the need for additional, time-consuming data analysis resulting from public inquiry. It was not possible to conclude this data analysis on the initial, targeted timeline for the proposed rule because public listening sessions raised additional concerns that CMS believed were important to properly and thoroughly research prior to publishing the final rule. We have decided that it is critical to conduct additional analysis about the economic impact of the rule. We are preparing additional data analysis and predictive modeling to better understand the economic impact of the proposed rule across different insurer types. This data analysis is designed to review the actual current reporting and model potential penalties that would be imposed were the final rule in place. Along with delays resulting from the agency's focus on the COVID-19 public health emergency, we determined that additional time is needed to address the complex policy and operational issues that were raised. We are extending the publication deadline so as to provide the most accurate, complete, and robust data possible to confirm the intent and economic impact of the final rule. This document extends the timeline for publication of the final rule for one year until February 18, 2024.

The notice is available at We are encouraged that CMS is taking more time to evaluate the impact of any final regulations, and we will let you know of any announcements from CMS in the future regarding the final regulations. If you have any questions or concerns about the anticipated regulations and any Section 111 compliance issues, please do not hesitate to contact us.


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