Ingredient Cost Clause Samples

Ingredient Cost. The term “

Ingredient Cost. On each Notice Date, a Reference Ingredient Price List (“RIPL”), in the form shown in Exhibit D, will be generated providing reference prices for all ingredients used by Purfoods on an FOB-Purfoods basis and with data exhibiting any increased ingredient costs as a result of adding new SKU’s to the Program. Ingredient Costs will be determined by multiplying ingredient usage for each Item by the relevant reference prices from the RIPL.

Ingredient Cost. The amount equal to the lowest of (i) the pharmacy’s usual and customary price, as submitted (“U&C”) less the Dispensing Fee, (ii) the applicable Maximum Allowable Cost (“MAC”), where applicable, (iii) AWP less the applicable AWP discount, or (iv) pharmacy submitted ingredient cost.

Ingredient Cost. Administrator will offer an average aggregate annual discount as reflected below on Client utilization to be calculated as follows. The pricing below will be implemented as of the Addendum Effective Date. The pricing below will be guaranteed upon the start of Client’s Renewal Term (as described in the Agreement) that begins on or after the Addendum Effective Date. [1-(total discounted AWP ingredient cost excluding dispensing fees and ancillary charges, and prior to application of Copayments) of applicable Prescription Drug Claims for the annual period divided by total undiscounted AWP ingredient cost (both amounts will be calculated as of the date of adjudication) for the annual period)]. Discounted ingredient cost will be the lesser of MAC (as applicable), U&C or AWP discount. Notwithstanding anything herein to the contrary: (i) a Prescription Drug Claim that processes at the Brand Drug rates (Participating Pharmacy Reimbursement Rates) and (Mail Pharmacy Reimbursement Rates), as indicated on the ingredient cost field of the Prescription Drug Claim’s data record, shall be reconciled as part of the Brand Drug guarantee below; and (ii) a Prescription Drug Claim that processes at the Generic Drug rates (Participating Pharmacy Reimbursement Rates) and (Mail Pharmacy Reimbursement Rates) above, as indicated on the ingredient cost field of the Prescription Drug Claim’s data record, shall be reconciled as part of the Generic Drug guarantee below. The Prescription Drug Claims that may be excluded from the reconciliation of the pricing guarantees are as identified in the “Prescription Drug Claims Excluded” paragraphs below in addition to Prescription Drug Claims dispensed in Puerto Rico, Guam, Northern Mariana Islands, Virgin Islands, Hawaii, Massachusetts, Alaska, West Virginia, and rural pharmacies. Furthermore, prices may vary in certain states for reasons such as most favored nations laws, other state or local legal requirements, geographic location, or other factors beyond the control of Administrator. In those situations, some Claims may be exempt from reconciliation of the financial guarantees set forth herein. All Claims may be aggregated for purposes of such rates. Claims dispensed in states subject to NADAC or another pricing benchmark required by law for pharmacy reimbursement may be excluded from dispensing fee guarantees only. Additionally, under any retail pricing arrangement(s) subject to NADAC pricing, Administrator will retrospectively invoice Cli...

Ingredient Cost. The Ingredient Cost is the lower of MAC or discounted AWP for Brand Name Drugs and Generic Drugs for prescriptions with a forty-five (45) days’ supply or greater. For prescriptions with less than a forty-five (45) days’ supply, the pricing set forth in Section 1 of this Schedule A will apply.

Ingredient Cost. The component of the prescription price that represents the charge for the ordered Prescription Drug product, supply, or other product (excluding any Dispensing Fee or taxes).