StacksVerified U.S. regulatory reference

48 CFR §1642.7001

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
When it is in the best interest of FEHBP enrollees to continue a contract for an interim period after the carrier discontinues its operations and has entered into a Purchase and Sale Agreement (or other descriptive term), but before a successor in interest has been recognized by OPM, the carrier may submit for OPM approval a Management Agreement that enables it to continue a contract through an agreement with a third party to administer the day-to-day performance of the contract. Examples of situations in which a Management Agreement may be accepted by OPM are:
  1. (a)When a transfer of assets does not meet the criteria for a novation;
  2. (b)While a request for a novation is pending;
  3. (c)While awaiting a decision on a request for a novation;
  4. (d)As an interim measure, when the timing of a transfer of assets or the timing of a carrier's withdrawal make administration of the contract inconvenient;
  5. (e)When it is not in the interests of the Government to either recognize a successor in interest or to immediately terminate the existing FEHBP contract.