Plan Factor Sample Clauses
The "Plan Factor" clause defines a specific metric or value used to calculate or adjust payments, performance measures, or other contractual obligations based on a predetermined plan. In practice, this clause might set out how certain variables—such as production output, service levels, or cost estimates—are factored into the overall contract terms, often by applying a multiplier or adjustment rate. Its core function is to provide a clear and consistent method for quantifying and applying plan-based adjustments, ensuring both parties understand how changes in the plan will impact their rights and responsibilities.
Plan Factor. (Reform only) - A budget-neutral calculation using a Health Plan's available historical enrollee diagnosis data grouped by a health-based risk assessment model. A Health Plan's plan factor is developed from the aggregated individual risk scores of the Health Plan's prior month’s enrollment. The plan factor modifies a Health Plan's monthly capitation payment to reflect the health status of its enrollees.