42 CFR § 422.134 - Reward and incentive programs.
(a) General rule. The MA organization may create one or more programs consistent with the standards of this section that provide rewards and incentives to enrollees in connection with participation in activities that focus on promoting improved health, preventing injuries and illness, and promoting efficient use of health care resources.
(b) Non-discrimination. Reward and incentive programs -
(1) Must not discriminate against enrollees based on race, national origin, including limited English proficiency, gender, disability, chronic disease, whether a person resides or receives services in an institutional setting, frailty, health status or other prohibited basis;
(2) Must be designed so that all enrollees are able to earn rewards; and
(3) Are subject to sanctions at § 422.752(a)(4).
(1) A rewards and incentives program must -
(i) Be offered in connection with the entire service or activity;
(ii) Be offered to all eligible members without discrimination;
(iii) Have a monetary cap as determined by CMS of a value that may be expected to impact enrollee behavior but not exceed the value of the health related service or activity itself; and
(iv) Otherwise comply with all relevant fraud and abuse laws, including, when applicable, the anti-kickback statute and civil money penalty prohibiting inducements to beneficiaries.
(2) Reward and incentive items may not -
(i) Be offered in the form of cash or other monetary rebates; or
(ii) Be used to target potential enrollees.
(3) The MA organization must make information available to CMS upon request about the form and manner of any rewards and incentives programs it offers and any evaluations of the effectiveness of such programs.