---
kind: "section"
citation: "42 C.F.R. § 417.151"
title: "42"
number: "417.151"
heading: "Applicability."
url: "https://uscodex.org/cfr/42/417.151"
---

# §417.151. Applicability.

- (a) **Basic rule.** Effective October 24, 1995, 1 this subpart applies to any employing entity that offers a health benefits plan to its employees, meets the conditions specified in [paragraphs (b) through (e)](#b..e) of this section, and elects to include one or more qualified HMOs in the health plan alternatives it offers its employees.
- (b) **Number of employees.** During any calendar quarter of the preceding calendar year, the employer or public entity employed an average of not less than 25 employees.
- (c) **Minimum wage.** During any calendar quarter of the preceding calendar year, the employer was required to pay the minimum wage specified in section 6 of the Fair Labor Standards Act of 1938, or would have been required to pay that wage but for [section 13(a)](/cfr/42/13.md?p=a) of that Act.
- (d) **Federal assistance under section 317 of the PHS Act.** The public entity has a pending application for, or is receiving, assistance under [section 317](/cfr/42/317.md) of the PHS Act.
- (e) **Employees in HMO's service area.** At least 25 of the employing entity's employees reside within the HMO's service area.

## Notes

### Amendments

[59 FR 49838, Sept. 30, 1994, as amended at 61 FR 27287, May 31, 1996]

### Source

Source: 45 FR 72517, Oct. 31, 1980, unless otherwise noted. Redesignated at 52 FR 36746, Sept. 30, 1987.

### Authority

Authority: 42 U.S.C. 1302 and 1395hh, and 300e, 300e-5, and 300e-9, and 31 U.S.C. 9701.

### Amendments

[59 FR 49838, Sept. 30, 1994, as amended at 61 FR 27287, May 31, 1996]