42 CFR § 460.42 - Suspension of enrollment or payment by CMS.

---
identifier: "/us/cfr/t42/s460.42"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "42 CFR § 460.42 - Suspension of enrollment or payment by CMS."
title_number: 42
title_name: "Public Health"
section_number: "460.42"
section_name: "Suspension of enrollment or payment by CMS."
chapter_name: "CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "E"
subchapter_name: "PROGRAMS OF ALL-INCLUSIVE CARE FOR THE ELDERLY (PACE)"
part_number: "460"
part_name: "PROGRAMS OF ALL-INCLUSIVE CARE FOR THE ELDERLY (PACE)"
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, 1395, 1395eee(f), and 1396u-4(f)."
regulatory_source: "64 FR 66279, Nov. 24, 1999, unless otherwise noted."
cfr_part: "460"
---


# 460.42 Suspension of enrollment or payment by CMS.

(a) *Enrollment.* If a PACE organization commits one or more violations specified in § 460.40, CMS may suspend enrollment of Medicare beneficiaries after the date CMS notifies the organization of the violation.

(b) *Payment.* If a PACE organization commits one or more violations specified in § 460.40, for individuals enrolled after the date CMS notifies the PACE organization of the violation, CMS may take the following actions:

(1) Suspend Medicare payment to the PACE organization.

(2) Deny payment to the State for medical assistance for services furnished under the PACE program agreement.

(c) *Term of suspension.* A suspension or denial of payment remains in effect until CMS is satisfied that the following conditions are met:

(1) The PACE organization has corrected the cause of the violation.

(2) The violation is not likely to recur.