Common use of Savings Calculation Clause in Contracts

Savings Calculation. Savings will be calculated one cell at a time, one year at a time, and one cohort at a time, as follows: S$X,P = MX,D * (TPBPMX,P – PBPMX,D,P), where: i. S$X,P = savings in dollars for a particular cell (X) for a particular cohort in a particular Demonstration year for a particular program (Medicare or Medicaid) ii. MX,D = months of eligibility for the beneficiaries in cell (X) in the demonstration group. Each cell in the comparison group will have the same weight as the corresponding cell in the demonstration group. iii. TPBPMX,P = target per beneficiary per month cost in cell (X) for a particular program iv. PBPMX,D,P = actual per beneficiary per month cost of the beneficiaries in cell (X) in the demonstration group for a particular program 1. The PBPMX,D,P is equal to the Medicare A/B costs or the Medicaid costs (excluding the costs above the cap) incurred during the period of eligibility for all beneficiaries in cell (X) in the demonstration group, divided by the months of eligibility for all beneficiaries in cell (X) in the demonstration group. 2. Whenever a beneficiary is eligible for part of a month (e.g. for a death that occurs in the middle of a month), then a fraction of the month will be used in determining the total number of months of eligibility.