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, 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 Compcare Pharmacy to determine Compcare 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 companies/units in the BCBSUW/UWS Group, (ii) costs associated with Schedule 2 Services performed directly for Compcare Pharmacy shall be allocable to 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.

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, and various business units, 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 Compcare Pharmacy UHI to determine Compcare PharmacyUHI'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 companies/units each company in the BCBSUW/UWS Group, (ii) costs associated with Schedule 2 Services performed directly for Compcare Pharmacy UHI shall be allocable to Compcare Pharmacy 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 to Compcare Pharmacy for specific Schedule 2 Services shall be subject to agreement by the parties on an annual basis.

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, and various business units, 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 Compcare Pharmacy Meridian Corp to determine Compcare PharmacyMeridian 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 companies/units each company in the BCBSUW/UWS Group, (ii) costs associated with Schedule 2 Services performed directly for Compcare Pharmacy Meridian Corp shall be allocable to Compcare Pharmacy 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 Compcare Pharmacy Meridian Corp for specific Schedule 2 Services shall be subject to agreement by the parties on an annual basis.