---
kind: "section"
citation: "42 C.F.R. § 438.710"
title: "42"
number: "438.710"
heading: "Notice of sanction and pre-termination hearing."
url: "https://uscodex.org/cfr/42/438.710"
---

# §438.710. Notice of sanction and pre-termination hearing.

- (a) **Notice of sanction.** Except as provided in [§ 438.706(c)](/cfr/42/438.706.md?p=c), before imposing any of the intermediate sanctions specified in this subpart, the State must give the affected entity timely written notice that explains the following:
  - (1) **The basis and nature of the sanction.**
  - (2) **Any other appeal rights that the State elects to provide.**
- (b) **Pre-termination hearing—**
  - (1) **General rule.** Before terminating an MCO, PCCM or PCCM entity contract under [§ 438.708](/cfr/42/438.708.md), the State must provide the entity a pre-termination hearing.
  - (2) **Procedures.** The State must do all of the following:
    - (i) Give the MCO, PCCM or PCCM entity written notice of its intent to terminate, the reason for termination, and the time and place of the hearing.
    - (ii) After the hearing, give the entity written notice of the decision affirming or reversing the proposed termination of the contract and, for an affirming decision, the effective date of termination.
    - (iii) For an affirming decision, give enrollees of the MCO, PCCM or PCCM entity notice of the termination and information, consistent with [§ 438.10](/cfr/42/438.10.md), on their options for receiving Medicaid services following the effective date of termination.

## Notes

### Source

Source: 81 FR 27853, May 6, 2016, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302.

### Source

Source: 67 FR 41095, June 14, 2002, unless otherwise noted.