---
kind: "section"
citation: "42 C.F.R. § 422.378"
title: "42"
number: "422.378"
heading: "Relationship to State law."
url: "https://uscodex.org/cfr/42/422.378"
---

# §422.378. Relationship to State law.

- (a) **Preemption of State law.** Any provisions of State law that relate to the licensing of the organization and that prohibit the organization from providing coverage under a contract as specified in this subpart, are superseded.
- (b) **Consumer protection and quality standards.**
  - (1) A waiver of State licensure granted under this subpart is conditioned upon the organization's compliance with all State consumer protection and quality standards that—
    - (i) Would apply to the organization if it were licensed under State law;
    - (ii) Generally apply to other MA organizations and plans in the State; and
    - (iii) **Are consistent with the standards established under this part.**
  - (2) The standards specified in [paragraph (b)(1)](#b-1) of this section do not include any standard preempted under [section 1856(b)(3)(B)](/cfr/42/1856.md?p=b-3-B) of the Act.
- (c) **Incorporation into contract.** In contracting with an organization that has a waiver of State licensure, CMS incorporates into the contract the requirements specified in [paragraph (b)](#b) of this section.
- (d) **Enforcement.** CMS may enter into an agreement with a State for the State to monitor and enforce compliance with the requirements specified in [paragraph (b)](#b) of this section by an organization that has obtained a waiver under this subpart.

## Notes

### Amendments

[63 FR 25377, May 7, 1998]

### Authority

Authority: 42 U.S.C. 1302, 1306, 1395w-21 through 1395w-28, and 1395hh.

### Source

Source: 63 FR 18134, Apr. 14, 1998, unless otherwise noted.

### Amendments

[63 FR 25377, May 7, 1998]