42 CFR § 421.205 - Termination by the Secretary.

---
identifier: "/us/cfr/t42/s421.205"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "42 CFR § 421.205 - Termination by the Secretary."
title_number: 42
title_name: "Public Health"
section_number: "421.205"
section_name: "Termination by the Secretary."
chapter_name: "CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "B"
subchapter_name: "MEDICARE PROGRAM"
part_number: "421"
part_name: "MEDICARE CONTRACTING"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 1302 and 1395hh."
regulatory_source: "45 FR 42179, June 23, 1980, unless otherwise noted."
cfr_part: "421"
---


# 421.205 Termination by the Secretary.

(a) *Cause for termination.* The Secretary may terminate a contract with a carrier at any time if he or she determines that the carrier has failed substantially to carry out any material terms of the contract or has performed its function in a manner inconsistent with the effective and efficient administration of the Medicare Part B program.

(b) *Notice and opportunity for hearing.* Upon notification of the Secretary's intent to terminate the contract, the carrier may request a hearing within 20 days after the date on the notice of intent to terminate.

(c) *Hearing procedures.* The hearing procedures will be those specified in § 421.128(c).