[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: 42CFR422.62]

[Page 838-840]
 
                         TITLE 42--PUBLIC HEALTH
 
                             HUMAN SERVICES
 
PART 422--MEDICARE+CHOICE PROGRAM--Table of Contents
 
            Subpart B--Eligibility, Election, and Enrollment
 
Sec. 422.62  Election of coverage under an M+C plan.

    (a) General: Coverage election periods--(1) Initial coverage 
election period. The initial coverage election period is the period 
during which a new M+C eligible individual may make an initial election. 
This period begins 3 months prior to the month the individual is first 
entitled to both Part A and Part B and ends the last day of the month 
preceding the month of entitlement.
    (2) Annual election period. (i) Beginning in 1999, the month of 
November is the annual election period for the following calendar year. 
Organizations offering M+C plans in January 1999 must open enrollment to 
Medicare beneficiaries in November 1998.
    (ii) During the annual election period, an individual eligible to 
enroll in an M+C plan may change his or her election from an M+C plan to 
original Medicare or to a different M+C plan, or from original Medicare 
to an M+C plan.
    (3) Open enrollment and disenrollment opportunities through 2001. 
From 1998 through 2001, the number of elections or changes that an M+C 
eligible individual may make is not limited (except as provided for in 
paragraph (d) of this section for M+C MSA plans). Subject to the M+C 
plan being open to enrollees as provided under Sec. 422.60(a)(2), an 
individual eligible to elect an M+C plan may change his or her election 
from an M+C plan to original Medicare or to a different M+C plan, or 
from original Medicare to an M+C plan.
    (4) Open enrollment and disenrollment during 2002. (i) Except as 
provided in paragraphs (a)(4)(ii), (a)(4)(iii), and (a)(6) of this 
section, an individual who is eligible to elect an M+C plan in 2002 may 
elect an M+C plan or change his or her election from an M+C plan to 
original Medicare or to a different M+C plan, or from original Medicare 
to an M+C plan, but only once during the first 6 months of the year.
    (ii) Newly eligible M+C individual. An individual who becomes an M+C 
eligible individual during 2002 may elect an

[[Page 839]]

M+C plan or original Medicare and then change his or her election once 
during the period that begins the month the individual is entitled to 
both Part A and Part B and ends on the last day of the 6th month of such 
entitlement, or on December 31, whichever is earlier. The individual can 
change the election from an M+C plan to original Medicare or to a 
different M+C plan, or from original Medicare to an M+C plan during this 
period.
    (iii) The limitation to one election or change in paragraphs 
(a)(4)(i) and (a)(4)(ii) of this section does not apply to elections or 
changes made during the annual election period specified in (a)(2) of 
this section or during a special enrollment period specified in 
paragraph (b) of this section.
    (5) Open enrollment and disenrollment beginning in 2003. (i) For 
2003 and subsequent years, except as provided in paragraphs (a)(5)(ii), 
(a)(5)(iii), and (a)(6) of this section, an individual who is eligible 
to elect an M+C plan may elect an M+C plan, change his or her election 
from an M+C plan to original Medicare or to a different M+C plan, or 
from original Medicare to an M+C plan, but only once during the first 3 
months of the year.
    (ii) Newly eligible M+C individual. An individual who becomes an M+C 
eligible individual during 2003 or later may elect an M+C plan or 
original Medicare and then change his or her election once during the 
period that begins the month the individual is entitled to both Part A 
and Part B and ends on the last day of the 3rd month of such 
entitlement, or on December 31, whichever is earlier. The individual can 
change the election from an M+C plan to original Medicare or to a 
different M+C plan, or from original Medicare to an M+C plan during this 
period.
    (iii) The limitation to one election or change in paragraphs 
(a)(5)(i) and (a)(5)(ii) of this section does not apply to elections or 
changes made during the annual election period specified in paragraph 
(a)(2) of this section or during a special election period specified in 
paragraph (b) of this section.
    (6) Open enrollment period for institutionalized individuals. After 
2001, an individual who is eligible to elect an M+C plan and who is 
institutionalized, as defined by CMS, is not limited (except as provided 
for in paragraph (d) of this section for M+C MSA plans) in the number of 
elections or changes he or she may make. Subject to the M+C plan being 
open to enrollees as provided under Sec. 422.60(a)(2), an M+C eligible 
institutionalized individual may at any time elect an M+C plan or change 
his or her election from an M+C plan to original Medicare, to a 
different M+C plan, or from iginal Medicare to an M+C plan.
    (b) Special election periods. Effective as of January 1, 1999 for 
M+C MSA plans, and as of January 1, 2002, for all other types of M+C 
plans, an individual may at any time (that is, not limited to the annual 
election period) discontinue the election of an M+C plan offered by an 
M+C organization and change his or her election, in the form and manner 
specified by CMS, from an M+C plan to original Medicare or to a 
different M+C plan under any of the following circumstances:
    (1) CMS or the organization has terminated the organization's 
contract for the plan, discontinued the plan in the area in which the 
individual resides, or the organization has notified the individual of 
the impending termination of the plan, or the impending discontinuation 
of the plan in the area in which the individual resides.
    (2) The individual is not eligible to remain enrolled in the plan 
because of a change in his or her place of residence to a location out 
of the service area or continuation area or other change in 
circumstances as determined by CMS but not including terminations 
resulting from a failure to make timely payment of an M+C monthly or 
supplemental beneficiary premium, or from disruptive behavior.
    (3) The individual demonstrates to CMS, in accordance with 
guidelines issued by CMS, that--
    (i) The organization offering the plan substantially violated a 
material provision of its contract under this part in relation to the 
individual, including, but not limited to the following:
    (A) Failure to provide the beneficiary on a timely basis medically 
necessary services for which benefits are available under the plan.

[[Page 840]]

    (B) Failure to provide medical services in accordance with 
applicable quality standards; or
    (ii) The organization (or its agent, representative, or plan 
provider) materially misrepresented the plan's provisions in marketing 
the plan to the individual.
    (4) The individual meets such other exceptional conditions as CMS 
may provide.
    (c) Special election period for individual age 65. Effective January 
1, 2002, an M+C eligible individual who elects an M+C plan during the 
initial enrollment period, as defined under section 1837(d) of the Act, 
that surrounds his or her 65th birthday (this period begins 3 months 
before and ends 3 months after the month of the individual's 65th 
birthday) may discontinue the election of that plan and elect coverage 
under original Medicare at any time during the 12-month period that 
begins on the effective date of enrollment in the M+C plan.
    (d) Special rules for M+C MSA plans--(1) Enrollment. An individual 
may enroll in an M+C MSA plan only during an initial or annual election 
period described in paragraphs (a)(1) and (a)(2) of this section or 
during November 1998.
    (2) Disenrollment. (i) Except as provided in paragraph (d)(2)(ii) of 
this section, an individual may disenroll from an M+C MSA plan only 
during--
    (A) November 1998;
    (B) An annual election period; or
    (C) The special election period described in paragraph (b) of this 
section.
    (ii) Exception. An individual who elects an M+C MSA plan during an 
annual election period and has never before elected an M+C MSA plan may 
revoke that election, no later than December 15 of that same year, by 
submitting to the organization that offers the M+C MSA plan a signed and 
dated request in the form and manner prescribed by CMS or by filing the 
appropriate disenrollment form through other mechanisms as determined by 
CMS.

[63 FR 35071, June 26, 1998; 63 FR 52612, Oct. 1, 1998, as amended at 65 
FR 40317, June 29, 2000]