---
kind: "section"
citation: "42 C.F.R. § 68b.11"
title: "42"
number: "68b.11"
heading: "Under what circumstances can the service or payment obligation be canceled, waived, or suspended?"
url: "https://uscodex.org/cfr/42/68b.11"
---

# §68b.11. Under what circumstances can the service or payment obligation be canceled, waived, or suspended?

- (a) Any obligation of a participant for service or payment to the federal government under this part will be canceled upon the death of the participant.
- (b) The Director may waive or suspend any service or payment obligation incurred by the participant upon request whenever compliance by the participant:
  - (1) Is impossible, or
  - (2)
    - (i) Would involve extreme hardship, and
    - (ii) If enforcement of the service or payment obligation would be unconscionable, as required by [section 487](/cfr/42/487.md) D(e) of the Act, [42 U.S.C. 288-4(e)](/usc/42/288-4.md?p=e).
- (c) The Director may approve a request for a suspension of the service or payment obligations for a period of one year. A renewal of this suspension may also be granted.
- (d) Compliance by a participant with a service or payment obligation will be considered impossible if the Director determines, on the basis of information and documentation as may be required, that the participant suffers from a physical or mental disability resulting in the permanent inability of the participant to perform the service or other activities that would be necessary to comply with the obligation.
- (e) In determining whether to waive or suspend any or all of the service or payment obligations of a participant as imposing an undue hardship and being against equity and good conscience, the Director, on the basis of information and documentation as may be required, will consider:
  - (1) The participant's present financial resources and obligations;
  - (2) The participant's estimated future financial resources and obligations; and
  - (3) The extent to which the participant has problems of a personal nature, such as physical or mental disability or terminal illness in the immediate family, which so intrude on the participant's present and future ability to perform as to raise a presumption that the individual will be unable to begin or complete the obligation incurred.

## Notes

### Authority

Authority: 42 U.S.C. 288-4.

### Source

Source: 80 FR 48274, Aug. 12, 2015, unless otherwise noted.