Common use of Trend Clause in Contracts

Trend. Trend is an estimate of the change in the cost of providing a specific set of benefits over time, resulting from both unit cost (price and service mix) and utilization changes. Trend factors are used to estimate the cost of providing services in some future year (contract year) based on the cost incurred in a prior period (base period). ODM and ▇▇▇▇▇▇ reviewed the program changes that could have a material effect upon the cost, utilization, or demographic structure of the program prior to or during the contract period, whose effect was not included within the base data. Several changes were evaluated for their impact on the CY 2014 rates.

Trend. Trend is an estimate of the change in the cost of providing a specific set of benefits over time, resulting from both unit cost (price and service mix) and utilization changes. Trend factors are used to estimate the cost of providing services in some future year (contract year) based on the cost incurred in a prior period (base period). ODM and ▇▇▇▇▇▇ Mercer reviewed the program changes that could have a material effect upon the cost, utilization, or demographic structure of the program prior to or during the contract period, whose effect was not included within the base data. Several changes were evaluated for their impact on the CY 2014 rates.