Common use of INDIRECT ALLOCATIONS Clause in Contracts

INDIRECT ALLOCATIONS. Cost allocations for those BCBSUW/UWS Services identified on Schedule 2 ("Schedule 2 Services") shall be determined annually for the next succeeding Fiscal Year ("Fiscal Year" shall mean January 1 through December 31) on the basis of utilization and cost studies performed by UWS. Through the use of Indirect Allocation Methods, as described in Schedule 3 attached hereto, utilization of Schedule 2 Services shall be reduced to an allocation percentage for each company in the BCBSUW/UWS Group. Each month all costs associated with the utilization of Schedule 2 Services shall be multiplied by the allocation percentage of UHI to determine UHI's allocable share of costs for Schedule 2 Services. Notwithstanding the preceding, (i) allocation percentages are subject to interim Fiscal Year adjustments to allocate more accurately costs based on actual utilization by each company in the BCBSUW/UWS Group, (ii) costs associated with Schedule 2 Services performed directly for UHI shall be allocable to UHI only, and (iii) subject to approval by the Vice President of Finance for the BCBSUW/UWS Group, the Indirect Allocation Method used to allocate costs for specific Schedule 2 Services shall be subject to agreement by the parties on an annual basis.(1) Schedule 2, attached hereto, sets forth UHI's annual allocation percentage for costs and expenses associated with Schedule 2 Services. Schedule 2 shall be amended annually.

INDIRECT ALLOCATIONS. Cost allocations for those BCBSUW/UWS Services identified on Schedule 2 ("Schedule 2 Services") shall be determined annually for the next succeeding Fiscal Year ("Fiscal Year" shall mean January 1 through December 31) on the basis of utilization and cost studies performed by UWS. Through the use of Indirect Allocation Methods, as described in Schedule 3 attached hereto, utilization of Schedule 2 Services shall be reduced to an allocation percentage for each company in the BCBSUW/UWS Group. Each month all costs associated with the utilization of Schedule 2 Services shall be multiplied by the allocation percentage of UHI Meridian Corp to determine UHIMeridian Corp's allocable share of costs for Schedule 2 Services. Notwithstanding the preceding, (i) allocation percentages are subject to interim Fiscal Year adjustments to allocate more accurately costs based on actual utilization by each company in the BCBSUW/UWS Group, (ii) costs associated with Schedule 2 Services performed directly for UHI Meridian Corp shall be allocable to UHI Meridian Corp only, and (iii) subject to approval by the Vice President of Finance for the BCBSUW/UWS Group, the Indirect Allocation Method used to allocate costs to Meridian Corp for specific Schedule 2 Services shall be subject to agreement by the parties on an annual basis.(1) Subsequently, indirect cost allocations to Meridian Corp shall be allocated to each individual business unit within Meridian Corp, including Meridian IRS, each month based on the ratio of the unit's directly charged expenses to the total Meridian Corp directly charged expenses. Notwithstanding the preceding sentence, costs associated with those Schedule 2 Services not actually utilized by Meridian IRS, such as cost center 104 for the Meridian Madison office, shall not be allocated to Meridian IRS. Schedule 2, attached hereto, sets forth UHIMeridian Corp's annual allocation percentage for costs and expenses associated with Schedule 2 Services. Schedule 2 shall be amended annually.

INDIRECT ALLOCATIONS. Cost allocations for those BCBSUW/UWS Services identified on Schedule 2 ("Schedule 2 Services") shall be determined annually for the next succeeding Fiscal Year ("Fiscal Year" shall mean January 1 through December 31) on the basis of utilization and cost studies performed by UWS. Through the use of Indirect Allocation Methods, as described in Schedule 3 attached hereto, utilization of Schedule 2 Services shall be reduced to an allocation percentage for each company company, and various business units, in the BCBSUW/UWS Group. Each month all costs associated with the utilization of Schedule 2 Services shall be multiplied by the allocation percentage of UHI Compcare Pharmacy to determine UHICompcare Pharmacy's allocable share of costs for Schedule 2 Services. Notwithstanding the preceding, (i) allocation percentages are subject to interim Fiscal Year adjustments to allocate more accurately costs based on actual utilization by each company companies/units in the BCBSUW/UWS Group, (ii) costs associated with Schedule 2 Services performed directly for UHI Compcare Pharmacy shall be allocable to UHI Compcare Pharmacy only, and (iii) subject to approval by the Vice President of Finance for the BCBSUW/UWS Group, the Indirect Allocation Method used to allocate costs to Compcare Pharmacy for specific Schedule 2 Services shall be subject to agreement by the parties on an annual basis.(1) Schedule 2, attached hereto, sets forth UHICompcare Pharmacy's annual allocation percentage for costs and expenses associated with Schedule 2 Services. Schedule 2 shall be amended annually.

INDIRECT ALLOCATIONS. Cost allocations for those BCBSUW/UWS Services identified on Schedule 2 ("Schedule 2 Services") shall be determined annually for the next succeeding Fiscal Year ("Fiscal Year" shall mean January 1 through December 31) on the basis of utilization and cost studies performed by UWS. Through the use of Indirect Allocation Methods, as described in Schedule 3 attached hereto, utilization of Schedule 2 Services shall be reduced to an allocation percentage for each company in the BCBSUW/UWS Group. For any specific Schedule 2 Service, UWIC's total allocation percentage shall be determined by adding the applicable allocation percentage from each of the service agreements included in Schedule 2. Each month all costs associated with the utilization of Schedule 2 Services shall be multiplied by the UWIC's total allocation percentage of UHI to determine UHIUWIC's allocable share of costs for Schedule 2 Services. Notwithstanding the preceding, (i) allocation percentages are subject to interim Fiscal Year adjustments to allocate more accurately costs based on actual utilization by each company in the BCBSUW/UWS Group, (ii) costs associated with Schedule 2 Services performed directly for UHI UWIC shall be allocable to UHI UWIC only, and (iii) subject to approval by the Vice President of Finance for the BCBSUW/UWS Group, the Indirect Allocation Method used to allocate costs for specific Schedule 2 Services shall be subject to agreement by the parties on an annual basis.(1) basis.1 Schedule 2, attached hereto, sets forth UHIUWIC's annual allocation percentage for costs and expenses associated with Schedule 2 ServicesServices rendered on behalf of or for the benefit of UWIC's UWG and Senior Health business. Schedule 2 shall be amended annually.