Section 417.164 - Effect of revocation of qualification on inclusion in employee's health benefit plansWhen 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