Common use of Federal Disallowance Clause in Contracts

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