Section 417.404 - General requirements(a) In order to contract with CMS under the Medicare program, an entity must- (1) Be determined by CMS to be an HMO or CMP (in accordance with §§ 117.142 and 417.407 , respectively); and(2) Comply with the contract requirements set forth in subpart L of this part.(b) CMS enters into or renews a contract only if it determines that action would be consistent with the effective and efficient implementation of section 1876 of the Act.60 FR 45675, Sept. 1, 1995