42 CFR § 401.617 - Suspension of collection action.
---
identifier: "/us/cfr/t42/s401.617"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "42 CFR § 401.617 - Suspension of collection action."
title_number: 42
title_name: "Public Health"
section_number: "401.617"
section_name: "Suspension of collection action."
chapter_name: "CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "A"
subchapter_name: "GENERAL PROVISIONS"
part_number: "401"
part_name: "GENERAL ADMINISTRATIVE REQUIREMENTS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 1302, 1395hh, 1395w-5, and 1395kk-2."
cfr_part: "401"
---
# 401.617 Suspension of collection action.
(a) *General conditions.* CMS may temporarily suspend collection action on a claim if the following general conditions are met—
(1) *Amount of future recovery.* CMS determines that future collection action may result in a recovery of an amount sufficient to justify periodic review and action on the claim by CMS during the period of suspension.
(2) *Statute of limitations.* CMS determines that—
(i) The applicable statute of limitations has been tolled, waived or has started running anew; or
(ii) Future collections may be made by CMS through offset despite an applicable statute of limitations.
(b) *Basis for suspension.* Bases on which CMS may suspend collection action on a particular claim include the following—
(1) A debtor cannot be located; or
(2) A debtor—
(i) Owns no substantial equity in property;
(ii) Is unable to make payment on CMS's claim or is unable to effect a compromise; and
(iii) Has future prospects that justify retention of the claim.
(c) *Locating debtors.* CMS will make every reasonable effort to locate missing debtors sufficiently in advance of the bar of an applicable statute of limitations to permit timely filing of a lawsuit to recover the amount of the claim.
(d) *Effect of suspension on liquidation of security.* CMS will liquidate security, obtained in partial recovery of a claim, despite a decision under this section to suspend collection action against the debtor for the remainder of the claim.