---
kind: "section"
citation: "42 C.F.R. § 417.484"
title: "42"
number: "417.484"
heading: "Requirement applicable to related entities."
url: "https://uscodex.org/cfr/42/417.484"
---

# §417.484. Requirement applicable to related entities.

- (a) **Definition.** As used in this section, related entity means any entity that is related to the HMO or CMP by common ownership or control and—
  - (1) Performs some of the HMO's or CMP's management functions under contract or delegation;
  - (2) Furnishes services to Medicare enrollees under an oral or written agreement; or
  - (3) Leases real property or sells materials to the HMO or CMP at a cost of more than $2,500 during a contract period.
- (b) **Requirement.** The contract must provide that the HMO or CMP agrees to require all related entities to agree that—
  - (1) HHS, the Comptroller General, or their designees have the right to inspect, evaluate, and audit any pertinent books, documents, papers, and records of the subcontractor involving transactions related to the subcontract; and
  - (2) The right under [paragraph (b)(1)](#b-1) of this section to information for any particular contract period will exist for a period equivalent to that specified in [§ 417.482(f)](/cfr/42/417.482.md?p=f).
  - (3) That payments must not be made to individuals and entities included on the preclusion list, defined in [§ 422.2](/cfr/42/422.2.md) of this chapter.

## Notes

### Amendments

[50 FR 1346, Jan. 10, 1985, as amended at 58 FR 38082, July 15, 1993; 81 FR 80556, Nov. 15, 2016; 83 FR 16721, Apr. 16, 2018]

### 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

[50 FR 1346, Jan. 10, 1985, as amended at 58 FR 38082, July 15, 1993; 81 FR 80556, Nov. 15, 2016; 83 FR 16721, Apr. 16, 2018]