42 CFR 417.164 – Effect of revocation of qualification on inclusion in employee’s health benefit plans
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When an HMO’s qualification is revoked under § 417.163(d), the following rules apply:
(a) The HMO may not seek inclusion in employees health benefits plans under subpart E of this part.
(b) Inclusion of the HMO in an employer’s health benefits plan—
(1) Is disregarded in determining whether the employer is subject to the requirements of subpart E of this part; and
(2) Does not constitute compliance with subpart E of this part by the employer.