{"data":{"id":"us/42-cfr-423.2470","jurisdiction":"us","citation":"42 CFR 423.2470","heading":"Remittance to CMS if the applicable MLR requirement is not met.","body":"(a) General requirement. For each contract year, a Part D sponsor must provide a remittance to CMS if the contract's MLR does not meet the minimum percentage required by § 423.2410(b).\n(b) Amount of remittance. For each contract that does not meet MLR requirement for a contract year, the Part D sponsor must remit to CMS the amount by which the MLR requirement exceeds the contract's actual MLR multiplied by the total revenue of the contract, as provided in § 423.2420(c), for the contract year.\n(c) Timing of remittance. CMS will deduct the remittance from plan payments in a timely manner after the MLR is reported, on a schedule determined by CMS.\n(d) Treatment of remittance. Payment to CMS must not be included in the numerator or denominator of any year's MLR.","path":["Title 42—Public Health","CHAPTER IV—CENTERS FOR MEDICARE \u0026 MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES","SUBCHAPTER B—MEDICARE PROGRAM","PART 423—VOLUNTARY MEDICARE PRESCRIPTION DRUG BENEFIT","Subpart X—Requirements for a Minimum Medical Loss Ratio"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-42.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:26:11Z","sha256":"7d5bbda75d89519570b1f0795a78057915b6bc06dc82687896bdecca4e5e3da0","source_id":"us-cfr","stale":true,"prev":"us/42-cfr-423.2460","next":"us/42-cfr-423.2480"},"notice":"GroundRules: Original legal text. Not legal advice."}