Effect of revocation of qualification on inclusion in employee's health benefit plans.

When an HMO's qualification is revoked under § 417.163(d), the following rules apply: (a) The HMO may not seek inclusion in employees health benefits plans under subpart E of this part. (b) Inclusion of the HMO in an employer's health benefits plan— (1) Is disregarded in determining whether the employer is subject to the requirements of subpart E of this part; and (2) Does not constitute compliance with subpart E of this part by the employer. [59 FR 49842, Sept. 30, 1994, as amended at 61 FR 27288, May 31, 1996]