---
kind: "section"
citation: "42 C.F.R. § 417.406"
title: "42"
number: "417.406"
heading: "Application and determination."
url: "https://uscodex.org/cfr/42/417.406"
---

# §417.406. Application and determination.

- (a) **Responsibility for making determinations.** CMS is responsible for determining whether an entity meets the requirements to be an HMO or CMP.
- (b) **Application requirements.**
  - (1) The application requirements for HMOs are set forth in [§ 417.143](/cfr/42/417.143.md).
  - (2) The requirements of [§ 417.143](/cfr/42/417.143.md) also apply to CMPs except that there are no application fees.
- (c) **Determination.** CMS uses the procedures set forth in [§ 417.144(a) through (d)](/cfr/42/417.144.md?p=a..d) to determine whether an entity is an HMO or CMP.
- (d) **Oversight of continuing compliance.**
  - (1) CMS oversees an entity's continued compliance with the requirements for an HMO as defined in [§ 417.1](/cfr/42/417.1.md) or for a CMP as set forth in [§ 417.407](/cfr/42/417.407.md).
  - (2) If an entity no longer meets those requirements, CMS terminates the contract of that entity in accordance with [§ 417.494](/cfr/42/417.494.md).

## Notes

### Amendments

[60 FR 45675, Sept. 1, 1995]

### Source

Source: 50 FR 1346, Jan. 10, 1985, unless otherwise noted.

### Authority

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

### Amendments

[60 FR 45675, Sept. 1, 1995]