Pass Through and Transparent Pricing definition
Pass Through and Transparent Pricing means the arrangement whereby SHBP receives the full value (100%) of Contractor’s negotiated Discounts with Network Pharmacies,and Contractor’s only profit is the Administrative Fee. If Contractor owns the mail order and/or specialty pharmacy provider services, then the guaranteed rates stated in Exhibit 3, Administrative Fees and Services, which have taken into account Contractor’s actual acquisition cost, must be the rates passed on to DCH and therefore meet the requirement for pass through pricing.