---
kind: "section"
citation: "42 C.F.R. § 434.6"
title: "42"
number: "434.6"
heading: "General requirements for all contracts and subcontracts."
url: "https://uscodex.org/cfr/42/434.6"
---

# §434.6. General requirements for all contracts and subcontracts.

- (a) **Contracts.** All contracts under this part must include all of the following:
  - (1) Include provisions that define a sound and complete procurement contract, as required by 2 CFR parts [200](/cfr/2/part200.md) and [300](/cfr/2/part300.md).
  - (2) **Identify the population covered by the contract.**
  - (3) **Specify any procedures for enrollment or reenrollment of the covered population.**
  - (4) **Specify the amount, duration, and scope of medical services to be provided or paid for.**
  - (5) Provide that the agency and HHS may evaluate through inspection or other means, the quality, appropriateness and timeliness of services performed under the contract.
  - (6) Specify procedures and criteria for terminating the contract, including a requirement that the contractor promptly supply all information necessary for the reimbursement of any outstanding Medicaid claims.
  - (7) Provide that the contractor maintains an appropriate record system for services to enrolled beneficiaries.
  - (8) Provide that the contractor safeguards information about beneficiaries as required by [part 431](/cfr/42/part431.md), [subpart F](/cfr/42/subpartF.md) of this chapter.
  - (9) Specify any activities to be performed by the contractor that are related to third party liability requirements in [part 433](/cfr/42/part433.md), [subpart D](/cfr/42/subpartD.md) of this chapter.
  - (10) Specify which functions may be subcontracted.
  - (11) **Provide that any subcontracts meet the requirements of paragraph (b) of this section.**
  - (12) **Specify the following—**
    - (i) No payment will be made by the contractor to a provider for provider-preventable conditions, as identified in the State plan.
    - (ii) The contractor will require that all providers agree to comply with the reporting requirements in [§ 447.26(d)](/cfr/42/447.26.md?p=d) of this subchapter as a condition of payment from the contractor.
    - (iii) The contractor will comply with such reporting requirements to the extent the contractor directly furnishes services.
- (b) **Subcontracts.** All subcontracts must be in writing and fulfill the requirements of this part that are appropriate to the service or activity delegated under the subcontract.
- (c) **Continued responsibility of contractor.** No subcontract terminates the legal responsibility of the contractor to the agency to assure that all activities under the contract are carried out.

## Notes

### Amendments

[48 FR 54020, Nov. 30, 1983, as amended at 67 FR 41095, June 14, 2002; 76 FR 32837, June 6, 2011; 81 FR 3011, Jan. 20, 2016; 89 FR 80069, Oct. 2, 2024]

### Authority

Authority: Sec. 1102 of the Social Security Act (42 U.S.C. 1302).

### Source

Source: 48 FR 54020, Nov. 30, 1983, unless otherwise noted.

### Amendments

[48 FR 54020, Nov. 30, 1983, as amended at 67 FR 41095, June 14, 2002; 76 FR 32837, June 6, 2011; 81 FR 3011, Jan. 20, 2016; 89 FR 80069, Oct. 2, 2024]