Common use of Annual Member Communications Allowance Clause in Contracts

Annual Member Communications Allowance. Contractor shall, at County’s direction, produce and distribute communication material to participants which shall include, but not be limited to: program announcement letters and brochures, network pharmacy directories, periodic updates, customized communications, and mutually agreed upon communications targeted to specific participants and/or groups of participants. Mail order pharmacy communications shall include, but not be limited to: mutually agreed upon educational material and coupons. Contractor shall perform the aforementioned distribution of communication materials at least twice a year and shall cover $15,000 per annual period for such costs. County shall be responsible for all amounts that exceed the $15,000 annual allowance. If County terminates the Contract before the end of the first year of the Initial Term, County shall refund to Contractor within thirty (30) days after the effective date of such termination the amount of member communications allowances that Contractor has covered for the County through such termination date. It is the intention of the parties that, for the purposes of the Federal Anti-Kickback Statute, this member communications allowance shall constitute and shall be treated as a discount against the price of drugs within the meaning of 42 U.S.C. 1320a – 7b(b)(3)(A).