42 CFR §417.164
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.