[Code of Federal Regulations]
[Title 42, Volume 2]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 42CFR407.45]

[Page 196-197]
 
                         TITLE 42--PUBLIC HEALTH
 
                             HUMAN SERVICES
 
PART 407--SUPPLEMENTARY MEDICAL INSURANCE (SMI) ENROLLMENT AND ENTITLEMENT--Table of Contents
 
                   Subpart C--State Buy-In Agreements
 
Sec. 407.45  Termination of State buy-in agreements.

    (a) Termination by the State--(1) Termination after advance notice. 
A State may terminate its buy-in agreement after giving CMS 3 months, 
advance notice.
    (2) Termination without advance notice. A State may terminate its 
buy-in agreement without advance notice if--
    (i) The State gives CMS written certification to the effect that it 
is no longer legally able to comply with one or more of the provisions 
of the agreement; and
    (ii) Submits a supporting opinion from the appropriate State legal 
officer, if CMS requests such an opinion.
    (b) Termination by CMS. If CMS, after giving the State notice and 
opportunity for hearing, finds that the State

[[Page 197]]

has failed to comply substantially with one or more of the provisions of 
the agreement, other than the requirement for timely payment of 
premiums, CMS will give the State written notice to the effect that the 
agreement will terminate on the date indicated in the notice unless, 
before that date, CMS finds that there is no longer that failure to 
comply. (Rules for collection of overdue premiums, including assessment 
of interest and offset against FFP due the State, are those set forth in 
the Notice published on September 30, 1985 at 50 FR 39784.)