On May 27, 2021, the Arizona Department of Insurance and Financial Institutions (AZ DIFI) and Imperial entered into a consent order requiring Imperial to "immediately cease from enrolling any new members into any of its Arizona HMO Medicare Advantage plans. Arizona took this action after determining that Imperial was operating without a proper certificate of authority.
Pursuant to 42 C.F.R. §§ 422.504(a)(1) and 423.505(b)(2), organizations that contract with CMS to offer MA-PD contracts must agree to accept new enrollments as provided in 42 C.F.R. Parts 422 and 423, Subpart B. Because Imperial is not permitted to accept new enrollments under its license with the state of Arizona, it is non-compliant with CMS' contract requirements.