CMS Pub. 100-16, ch. 11, § 60.1

The MA contracts are automatically renewed from term-to-term unless either CMS or the

MAO provides notice of the intent to non-renew or terminate the contract at the end of

the current term. Renewal of a contract is dependent on CMS and the MAO reaching

agreement on the bid submitted by the MAO. Additional contract provisions or changes

for subsequent years will be incorporated via an addendum to the original contract, as

necessary.

CMS will notify each MA organization of its decision whether to authorize the renewal

of its MA contract, along with applicable appeal rights, by May 1 of the current contract

year.

NOTE: CMS annually issues a call letter specifying information concerning the contract

renewal process. For information for 2007 contracts, view our call letter at

http://www.cms.hhs.gov/HealthPlansGenInfo. The call letter includes the HPMS plan

crosswalk which specifies MA plan renewal guidelines and operational instructions by

designating the relationships between plans offered in 2006 to those being offered in

2007.