---
kind: "section"
citation: "42 C.F.R. § 417.492"
title: "42"
number: "417.492"
heading: "Nonrenewal of contract."
url: "https://uscodex.org/cfr/42/417.492"
---

# §417.492. Nonrenewal of contract.

- (a) **Nonrenewal by the HMO or CMP.**
  - (1) If an HMO or CMP does not intend to renew its contract, it must—
    - (i) Give written notice to CMS at least 90 days before the end of the current contract period; and
    - (ii) **Notify each Medicare enrollee by mail at least 60 days before the end of the contract period.**
  - (2) CMS may accept a nonrenewal notice submitted less than 90 days before the end of a contract period if—
    - (i) The HMO or CMP notifies its Medicare enrollees and the public in accordance with [paragraph (a)(1)](#a-1) of this section; and
    - (ii) Acceptance would not otherwise jeopardize the effective and efficient administration of the Medicare program.
- (b) **Nonrenewal by CMS—**
  - (1) **Notice of nonrenewal.** If CMS decides not to renew a contract, it gives written notice of nonrenewal as follows:
    - (i) **To the HMO or CMP at least 90 days before the end of the contract period.**
    - (ii) **To the HMO's or CMP's Medicare enrollees at least 60 days before the end of the contract period.**
  - (2) **Notice of appeal rights.** CMS gives the HMO or CMP written notice of its right to appeal the nonrenewal decision, in accordance with [part 422](/cfr/42/part422.md) [subpart N](/cfr/42/subpartN.md) of this chapter, if CMS's decision was based on any of the reasons specified in [§ 417.494(b)](/cfr/42/417.494.md?p=b).

## Notes

### Amendments

[50 FR 1346, Jan. 10, 1985, as amended at 58 FR 38079, July 15, 1993; 60 FR 45681, Sept. 1, 1995; 75 FR 19803, Apr. 15, 2010; 77 FR 22166, Apr. 12, 2012]

### 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 38079, July 15, 1993; 60 FR 45681, Sept. 1, 1995; 75 FR 19803, Apr. 15, 2010; 77 FR 22166, Apr. 12, 2012]