42 CFR 422.378 - Relationship to State law.
(a)Preemption of State law. Any provisions of State law that relate to the licensing of the organization and that prohibit the organization from providing coverage under a contract as specified in this subpart, are superseded.
(b)Consumer protection and quality standards.
(1) A waiver of State licensure granted under this subpart is conditioned upon the organization's compliance with all State consumer protection and quality standards that -
(i) Would apply to the organization if it were licensed under State law;
(ii) Generally apply to other MA organizations and plans in the State; and
(iii) Are consistent with the standards established under this part.
(c)Incorporation into contract. In contracting with an organization that has a waiver of State licensure, CMS incorporates into the contract the requirements specified in paragraph (b) of this section.
(d)Enforcement. CMS may enter into an agreement with a State for the State to monitor and enforce compliance with the requirements specified in paragraph (b) of this section by an organization that has obtained a waiver under this subpart.