Section 423.642 - Notice of contract determination(a) When CMS makes a contract determination under § 423.641 , it gives the PDP sponsor written notice.(b) The notice specifies the-(1) Reasons for the determination; and(2) The Part D sponsor's right to request a hearing.(c)CMS-initiated terminations -(1)General rule. Except as provided in (c)(2) of this section, CMS mails notice to the Part D plan sponsor 45 calendar days before the anticipated effective date of the termination.(2)Exception. If a contract is terminated in accordance with § 423.509(b)(2)(i) of this part, CMS notifies the Part D plan sponsor of the date that it will terminate the Part D plan sponsor's contract.(d) When CMS determines that it will not authorize a contract renewal, CMS mails the notice to the Part D sponsor by August 1 of the current contract year. 70 FR 4525 , Jan. 28, 2005, as amended at 72 FR 68733 , Dec. 5, 2007; 75 FR 19823 , Apr. 15, 2010; 79 FR 29965 , May 23, 2014