---
kind: "section"
citation: "42 C.F.R. § 422.400"
title: "42"
number: "422.400"
heading: "State licensure requirement."
url: "https://uscodex.org/cfr/42/422.400"
---

# §422.400. State licensure requirement.


Except in the case of a PSO granted a waiver under subpart H of this part, each MA organization must—

- (a) Be licensed under State law, or otherwise authorized to operate under State law, as a risk-bearing entity (as defined in [§ 422.2](/cfr/42/422.2.md)) eligible to offer health insurance or health benefits coverage in each State in which it offers one or more MA plans;
- (b) If not commercially licensed, obtain certification from the State that the organization meets a level of financial solvency and such other standards as the State may require for it to operate as an MA organization; and
- (c) **Demonstrate to CMS that—**
  - (1) The scope of its license or authority allows the organization to offer the type of MA plan or plans that it intends to offer in the State; and
  - (2) If applicable, it has obtained the State certification required under [paragraph (b)](#b) of this section.

## Notes

### Source

Source: 63 FR 35099, June 26, 1998, unless otherwise noted.

### 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.