Drug Trend definition
Drug Trend means the rate of change in the Drug Spend from one year to another, expressed as a percentage, as agreed by the parties. No later than December 1 of each year, the Board shall retain an actuary to propose a Drug Trend for the following year. That proposed Drug Trend shall be binding on both parties unless either party objects in writing to the proposal within fifteen (15) days after its receipt of the proposal. Upon the objection of either party, or as provided under 6.01(d), the parties shall negotiate in good faith to agree on a Drug Trend for that year.
Examples of Drug Trend in a sentence
Unless otherwise agreed in writing by the parties from time to time, and as limited by (5) below, the Incentive Percentage for any calendar year shall be determined by agreement of the parties, made simultaneously with the agreement upon the Drug Trend for that year.
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.
For example, legislative mandates or discretionary actions taken by the Group Insurance Board could affect the Drug Trend for a year.