---
kind: "section"
citation: "42 C.F.R. § 417.166"
title: "42"
number: "417.166"
heading: "Waiver of assurances."
url: "https://uscodex.org/cfr/42/417.166"
---

# §417.166. Waiver of assurances.

- (a) **General rule.** CMS may release an HMO from compliance with any assurances the HMO gives under subpart D of this part if—
  - (1) The qualification requirements are changed by Federal law; or
  - (2) **The HMO shows good cause, consistent with the purposes of title XIII of the PHS Act.**
- (b) **Basis for finding of good cause.**
  - (1) Grounds upon which CMS may find good cause include but are not limited to the following:
    - (i) The HMO has filed for reorganization under Federal bankruptcy provisions and the reorganization can only be approved with the waiver of the assurances.
    - (ii) State laws governing the entity have been changed after it signed the assurances so as to prohibit the HMO from being organized and operated in a manner consistent with the signed assurances.
  - (2) Changes in State laws do not constitute good cause to the extent that the changes are preempted by Federal law under [section 1311](/cfr/42/1311.md) of the PHS Act.
- (c) **Consequences of waiver.** If CMS waives any assurances regarding compliance with section 1301 of the PHS Act, CMS concurrently revokes the HMO's qualification unless the waiver is based on [paragraph (a)(1)](#a-1) of this section.

## Notes

### Amendments

[59 FR 49842, Sept. 30, 1994, as amended at 61 FR 27288, May 31, 1996]

### Source

Source: 43 FR 32255, July 25, 1978, 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 49842, Sept. 30, 1994, as amended at 61 FR 27288, May 31, 1996]