---
kind: "section"
citation: "42 C.F.R. § 417.153"
title: "42"
number: "417.153"
heading: "Offer of HMO alternative."
url: "https://uscodex.org/cfr/42/417.153"
---

# §417.153. Offer of HMO alternative.

- (a) **Basic rule.** An employing entity that is subject to this subpart and that elects to include one or more qualified HMOs must offer the HMO alternative in accordance with this section.
- (b) **Employees to whom the HMO option must be offered.** Each employing entity must offer the option of enrollment in a qualified HMO to each eligible employee and his or her eligible dependents who reside in the HMO's service area.
- (c) **Manner of offering the HMO option.**
  - (1) For employees who are represented by a bargaining representative, the option of enrollment in a qualified HMO—
    - (i) Must first be presented to the bargaining representative; and
    - (ii) If the representative accepts the option, must then be offered to each represented employee.
  - (2) For employees not represented by a bargaining representative, the option must be offered directly to those employees.

## Notes

### Amendments

[59 FR 49839, 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 49839, Sept. 30, 1994, as amended at 61 FR 27287, May 31, 1996]