---
kind: "section"
citation: "42 C.F.R. § 408.210"
title: "42"
number: "408.210"
heading: "Termination of SMI premium surcharge agreement."
url: "https://uscodex.org/cfr/42/408.210"
---

# §408.210. Termination of SMI premium surcharge agreement.

- (a) **Termination by the State or local government agency.** The State or local government agency may voluntarily terminate its agreement with CMS as follows:
  - (1) The State or local government agency must notify CMS, in writing, at least 30 days before the effective date of the termination.
  - (2) The State or local government agency must pay any unpaid premium surcharge amounts and interest due within 30 days after the effective date of the termination.
  - (3) Interest will continue to accrue until all amounts due are paid in full.
- (b) **Termination by CMS.** CMS may terminate the agreement with a State or local government agency as follows:
  - (1) If a State or local government agency's payments are delinquent 30 days or more, CMS may terminate the agreement with 30 days advance notice.
  - (2) If the State or local government agency fails to comply with the terms of the agreement or procedures promulgated by CMS, CMS may terminate the agreement with 30 days advance notice.
  - (3) If CMS finds that the State or local government agency is not acting in the best interest of the enrollees, or CMS, or for any reason other than those in paragraphs [(b)(1)](#b-1) and [(b)(2)](#b-2) of this section, CMS may terminate the agreement at any time.
  - (4) The State or local government agency must pay all outstanding premium surcharge and any interest amounts due within 30 days after the effective date of the termination.
  - (5) Interest will continue to accrue until all amounts due are paid in full.
  - (6) After the agreement is terminated, CMS will resume collection of the premium surcharge from the enrollees covered under the terminated agreement.
  - (7) If an agreement is terminated by CMS, the State or local government agency must wait 3 years from the effective date of the termination before it can request to enter into another SMI premium surcharge agreement.

## Notes

### Source

Source: 67 FR 60996, Sept. 27, 2002, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302 and 1395hh.

### Source

Source: 52 FR 48115, Dec. 18, 1987, unless otherwise noted.