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                            FEHBAR
                            Subpart 1642.70—Management Agreement (in Lieu of Novation Agreement)
        
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FEHBARPart Number: 1642
        
                  

                                
                  
        Federal Employee Health Benefits Acquisition Regulation
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Subpart 1642.70—Management Agreement (in Lieu of Novation Agreement)Subpart 1642.70—Management Agreement (in Lieu of Novation Agreement)    **Parent topic:**  PART 1642—CONTRACT ADMINISTRATION1642.7001 Management agreement.       When it is in the best interest of FEHBP enrollees to continue a contract for an interim period after the carrier discontinues its operations and has entered into a Purchase and Sale Agreement (or other descriptive term), but before a successor in interest has been recognized by OPM, the carrier may submit for OPM approval a Management Agreement that enables it to continue a contract through an agreement with a third party to administer the day-to-day performance of the contract. Examples of situations in which a Management Agreement may be accepted by OPM are:          (a) When a transfer of assets does not meet the criteria for a novation;          (b) While a request for a novation is pending;          (c) While awaiting a decision on a request for a novation;          (d) As an interim measure, when the timing of a transfer of assets or the timing of a carrier's withdrawal make administration of the contract inconvenient;          (e) When it is not in the interests of the Government to either recognize a successor in interest or to immediately terminate the existing FEHBP contract.
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