Common use of Enforcement of Budget Neutrality Clause in Contracts

Enforcement of Budget Neutrality. CMS shall enforce the budget neutrality agreement over the life of the demonstration as adjusted July 1, 2008, rather than on an annual basis. However, if the Commonwealth exceeds the calculated cumulative budget neutrality expenditure limit by the percentage identified below for any of the demonstration years, the Commonwealth must submit a corrective action plan to CMS for approval. DY 18 Cumulative budget neutrality limit plus: 2.0percent DY 18 through DY 19 Cumulative budget neutrality limit plus: 1.5 percent DY 18 through DY 20 Cumulative budget neutrality limit plus: 1.0 percent DY 18 through 21 Cumulative budget neutrality limit plus: .5 percent DY 18 through 22 Cumulative budget neutrality limit plus: 0 percent In addition, the Commonwealth may be required to submit a corrective action plan if an analysis of the expenditure data in relationship to the budget neutrality expenditure cap indicates a possibility that the demonstration will exceed the cap during this extension.

Enforcement of Budget Neutrality. CMS shall enforce the budget neutrality agreement over the life of the demonstration Demonstration as adjusted July 1, 2008, rather than on an annual basis. However, if the Commonwealth exceeds the calculated cumulative budget neutrality expenditure limit by the percentage identified below for any of the demonstration Demonstration years, the Commonwealth must submit a corrective action plan to CMS for approval. Through DY 18 11 Cumulative budget neutrality limit plus: 2.0percent 0 percent DY 18 through DY 19 12 Cumulative budget neutrality limit plus: 1.5 1 percent DY 18 12 through DY 20 13 Cumulative budget neutrality limit plus: 1.0 0.5 percent DY 18 12 through 21 Cumulative budget neutrality limit plus: .5 percent DY 18 through 22 14 Cumulative budget neutrality limit plus: 0 percent In addition, the Commonwealth may be required to submit a corrective action plan if an analysis of the expenditure data in relationship to the budget neutrality expenditure cap indicates a possibility that the demonstration Demonstration will exceed the cap during this extension.