Common use of Payor Clause in Contracts

Payor. The entity or organization directly responsible for the payment of Company Compensation to the Contractor under a Plan. With respect to a self-funded Plan covering the employees of one or more employers, the Payor shall be the employer(s) and/or any funding mechanism used by the employer(s) to pay Plan benefits. With respect to an insured Plan or Plan providing benefits through a health maintenance organization, the Payor shall be the insurance company or health maintenance organization, as the case may be. Under no conditions shall the parties interpret “Payor” to be, nor shall the negotiated rates herein described be accessible to, any party other than Company or an employer offering a self-funded, non-indemnity product that contracted with Company to administer such product.