---
kind: "section"
citation: "42 C.F.R. § 423.650"
title: "42"
number: "423.650"
heading: "Right to a hearing, burden of proof, standard of proof, and standards of review."
url: "https://uscodex.org/cfr/42/423.650"
---

# §423.650. Right to a hearing, burden of proof, standard of proof, and standards of review.

- (a) **Right to a hearing.** The following parties are entitled to a hearing:
  - (1) A contract applicant that has been determined to be unqualified to enter into a contract with CMS under Part D of Title XVIII of the Act in accordance with [§ 423.502](/cfr/42/423.502.md) and [§ 423.503](/cfr/42/423.503.md) of this part.
  - (2) A Part D sponsor whose contract has been terminated in accordance with [§ 423.509](/cfr/42/423.509.md) of this part.
  - (3) A Part D sponsor whose contract has not been renewed in accordance with [§ 423.507](/cfr/42/423.507.md) of this part.
  - (4) A Part D sponsor who has had an intermediate sanction imposed in accordance with [§ 423.752(a) through (b)](/cfr/42/423.752.md?p=a..b).
- (b) **Burden of proof, standard of proof, and standard of review at hearing.**
  - (1) During a hearing to review a contract determination as described at [§ 423.641(a)](/cfr/42/423.641.md?p=a) of this subpart, the applicant has the burden of proving by a preponderance of the evidence that CMS' determination was inconsistent with the requirements of [§ 423.502](/cfr/42/423.502.md) and [§ 423.503](/cfr/42/423.503.md) of this part.
  - (2) During a hearing to review a contract determination as described at [§ 423.641(b)](/cfr/42/423.641.md?p=b) of this part, the Part D plan sponsor has the burden of proving by a preponderance of the evidence that CMS' determination was inconsistent with the requirements of [§ 423.507](/cfr/42/423.507.md) of this part.
  - (3) During a hearing to review a contract determination as described at [§ 423.641(c)](/cfr/42/423.641.md?p=c) of this subpart, the Part D plan sponsor has the burden of proving by a preponderance of the evidence that CMS' determination was inconsistent with the requirements of [§ 423.509](/cfr/42/423.509.md) of this part.
  - (4) During a hearing to review the imposition of an intermediate sanction as described at [§ 423.750](/cfr/42/423.750.md) of this part, the Part D sponsor has the burden of proving by a preponderance of the evidence that CMS' determination was inconsistent with the requirements of [§ 423.752](/cfr/42/423.752.md) of this part.
- (c) **Timing of favorable decision.** Notice of any decision favorable to the Part D sponsor appealing a determination that it is not qualified to enter into a contract with CMS must be issued by September 1 for the contract in question to be effective on January 1 of the following year.

## Notes

### Amendments

[75 FR 19824, Apr. 15, 2010, as amended at 80 FR 7965, Feb. 12, 2015]

### 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

[75 FR 19824, Apr. 15, 2010, as amended at 80 FR 7965, Feb. 12, 2015]