422.512—Termination of contract by the MA organization.
(a) Cause for termination.
The MA organization may terminate the MA contract if CMS fails to substantially carry out the terms of the contract.
(1)
To CMS, at least 90 days before the intended date of termination. This notice must specify the reasons why the MA organization is requesting contract termination.
(2)
To its Medicare enrollees, at least 60 days before the termination effective date. This notice must include a written description of alternatives available for obtaining Medicare services within the services area, including alternative MA plans, Medigap options, original Medicare and must receive CMS approval.
(3)
To the general public at least 60 days before the termination effective date by publishing an CMS-approved notice in one or more newspapers of general circulation in each community or county located in the MA organization's geographic area.
(c) Effective date of termination.
The effective date of the termination is determined by CMS and is at least 90 days after the date CMS receives the MA organization's notice of intent to terminate.
(d) CMS's liability.
CMS's liability for payment to the MA organization ends as of the first day of the month after the last month for which the contract is in effect.
(e) Effect of termination by the organization.
CMS does not enter into an agreement with an organization that has terminated its contract within the preceding 2 years unless there are circumstances that warrant special consideration, as determined by CMS.
[63 FR 35099, June 26, 1998, as amended at 67 FR 13288, Mar. 22, 2002]