---
kind: "section"
citation: "42 C.F.R. § 423.642"
title: "42"
number: "423.642"
heading: "Notice of contract determination."
url: "https://uscodex.org/cfr/42/423.642"
---

# §423.642. Notice of contract determination.

- (a) When CMS makes a contract determination under [§ 423.641](/cfr/42/423.641.md), it gives the PDP sponsor written notice.
- (b) **The notice specifies the—**
  - (1) Reasons for the determination; and
  - (2) **The Part D sponsor's right to request a hearing.**
- (c) **CMS-initiated terminations—**
  - (1) **General rule.** Except as provided in (c)(2) of this section, CMS mails notice to the Part D plan sponsor 45 calendar days before the anticipated effective date of the termination.
  - (2) **Exception.** If a contract is terminated in accordance with [§ 423.509(b)(2)(i)](/cfr/42/423.509.md?p=b-2-i) of this part, CMS notifies the Part D plan sponsor of the date that it will terminate the Part D plan sponsor's contract.
- (d) When CMS determines that it will not authorize a contract renewal, CMS mails the notice to the Part D sponsor by August 1 of the current contract year.

## Notes

### Amendments

[70 FR 4525, Jan. 28, 2005, as amended at 72 FR 68733, Dec. 5, 2007; 75 FR 19823, Apr. 15, 2010; 79 FR 29965, May 23, 2014]

### Authority

Authority: 42 U.S.C. 1302, 1306, 1395w-101 through 1395w-152, and 1395hh.

### Source

Source: 70 FR 4525, Jan. 28, 2005, unless otherwise noted.

### Amendments

[70 FR 4525, Jan. 28, 2005, as amended at 72 FR 68733, Dec. 5, 2007; 75 FR 19823, Apr. 15, 2010; 79 FR 29965, May 23, 2014]