42 CFR § 423.2520 - Non-renewal or termination of appointment.
---
identifier: "/us/cfr/t42/s423.2520"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "42 CFR § 423.2520 - Non-renewal or termination of appointment."
title_number: 42
title_name: "Public Health"
section_number: "423.2520"
section_name: "Non-renewal or termination of appointment."
chapter_name: "CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "B"
subchapter_name: "MEDICARE PROGRAM"
part_number: "423"
part_name: "VOLUNTARY MEDICARE PRESCRIPTION DRUG BENEFIT"
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, 1306, 1395w-101 through 1395w-152, and 1395hh."
regulatory_source: "70 FR 4525, Jan. 28, 2005, unless otherwise noted."
cfr_part: "423"
---
# 423.2520 Non-renewal or termination of appointment.
(a) *Notice of non-renewal.* If the LI NET sponsor decides for any reason to non-renew its existing contract, it must notify CMS by January 1 of the year before the next contract year. Except as provided in paragraph (c) of this section, if CMS decides for any reason to non-renew the existing contract with the incumbent LI NET sponsor, CMS notifies the LI NET sponsor by January 1 of the year before the next contract year.
(b) *Selection of successor and transition period.* After a notice of non-renewal or termination, CMS selects a successor for the LI NET contract from among potentially eligible entities (as detailed in § 423.2516). The outgoing LI NET sponsor must coordinate with the successor for a period of no less than 3 months to ensure seamless transition of the LI NET program, including timely transfer of any data or files.
(c) *Immediate termination for cause.* (1) Notwithstanding paragraph (a) of this section, CMS may immediately terminate the existing LI NET contract for any of the reasons specified at § 423.509(a)(4)(i) and (xii) or § (b)(2)(i)(A) and (B).
(2) CMS sends notice of an immediate termination as specified at § 423.509(b)(2)(ii).
(d) *Appeal rights.* Subpart N of this part applies to a termination under paragraph (c) of this section.