Common use of Federal Disallowance Clause in Contracts

Federal Disallowance. If the federal government recoups money from the state for expenses and/or costs that are deemed unallowable by the federal government, the state has the right to, in turn, recoup payments made to the MCOs for these same expenses and/or costs, even if they had not been previously disallowed by the state and were incurred by the MCO, and any such expenses and/or costs would then be deemed unallowable by the state. If the state retroactively recoups money from the MCOs due to a federal disallowance, the state will recoup the entire amount paid to the MCO for the federally disallowed expenses and/or costs, not just the federal portion.

Federal Disallowance. If the federal government recoups money from the state for unallowable expenses and/or costs that are deemed unallowable by the federal governmentor costs, the state has the right to, in turn, to recoup payments made to the MCOs MCO in turn for these same expenses and/or or costs, . HHSC is allowed to recoup payments from the MCO even if they the expenses or costs had not been previously disallowed by the state and were incurred by the MCO, and any such . Any of the same future expenses and/or or costs would then be deemed unallowable by the state. If the state retroactively recoups money from the MCOs MCO due to a federal disallowance, the state will recoup the entire amount paid to the MCO for the federally disallowed expenses and/or or costs, not just the federal portion.