Windfall Adjustment Sample Clauses

Windfall Adjustment. The purpose of the incentive payment is to reward the Contractor for pharmacy benefits management services that result in savings to the group health insurance program. The parties recognize that some future events might have a disproportionate effect, which was not and could not have reasonably been anticipated in advance, on the Drug Trend, and therefore the Savings. The parties agree that the Contractor should not receive incentive payments based on savings not derived from the cost containment services provided by the provisions of the Contractor’s administrative services. For example, legislative mandates or discretionary actions taken by the Group Insurance Board could affect the Drug Trend for a year. The introduction of a new, low cost drug that largely replaces all present prescription treatment for a disease could result in a Savings. These examples are not intended to be exclusive or in any way limiting. The parties agree to alert each other to any such events as soon as possible after a potential disproportionate and unanticipated effect on Savings is perceived and thereafter to negotiate in good faith to mutually agree upon an adjustment of the measurement of Savings or the Percentage, so as to better achieve the goal of having the incentive reward based on savings achieved by the Contractor’s management