Common use of Enforcement of Budget Neutrality Clause in Contracts

Enforcement of Budget Neutrality. CMS shall enforce budget neutrality over the life of the Demonstration rather than on an annual basis. However, if the State’s expenditures exceed the calculated cumulative budget neutrality expenditure cap by the percentage identified below for any of the Demonstration years, the State must submit a corrective action plan to CMS for approval. DY Cumulative Target Definition Percentage Year 15 Cumulative budget neutrality limit plus: 1,0 percent Years 16 through 18 Cumulative budget neutrality limit plus: 0.5 percent Year 19 and 20 Cumulative budget neutrality limit plus: 0 percent In addition, the State may be required to submit a corrective action plan if an analysis of the expenditure data in relationship to the budget neutrality expenditure cap indicates a possibility that the Demonstration will exceed the cap during this extension.

Enforcement of Budget Neutrality. CMS shall enforce budget neutrality over the life of the Demonstration rather than on an annual basis. However, if the State’s 's expenditures exceed the calculated cumulative budget neutrality expenditure cap by the percentage identified below for any of the Demonstration years, the State must submit a corrective action plan to CMS for approval. DY Demonstration Year Cumulative Target Expenditure Cap Definition Percentage Year 15 Cumulative Budget neutrality expenditure cap plus 1 percent Year 15 and 16 Combined budget neutrality limit plus: 1,0 percent Years 16 through 18 Cumulative budget neutrality limit plus: expenditure caps plus 0.5 percent Year 19 and 20 Cumulative 16 through 17 Combined budget neutrality limit plus: expenditure caps plus 0 percent In addition, the State may be required to submit a corrective action plan if an analysis of the expenditure data in relationship to the budget neutrality expenditure cap limit indicates a possibility that the Demonstration will exceed the cap limit during this extension.

Enforcement of Budget Neutrality. CMS shall enforce budget neutrality over the life of the Demonstration demonstration, rather than on an annual basis. However, if the State’s expenditures exceed state exceeds the calculated cumulative budget neutrality expenditure cap limit by the percentage identified below for any of the Demonstration demonstration years, the State state must submit a corrective action plan to CMS for approval. DY Demonstration Year Cumulative Target Definition Percentage Year Years 1 through 9 Cumulative budget neutrality cap plus: 1.0 percent Years 1 through 10 Cumulative budget neutrality cap plus: 0.5 percent Years 1 through 15 Cumulative budget neutrality limit plus: 1,0 percent Years 16 through 18 Cumulative budget neutrality limit plus: 0.5 percent Year 19 and 20 Cumulative budget neutrality limit cap plus: 0 percent In addition, State’s Response: The State has not exceeded the State may be required to submit a corrective action plan if an analysis of the expenditure data in relationship to the calculated cumulative budget neutrality expenditure cap indicates a possibility that limit by the Demonstration will exceed percentage identified in the cap during this extensionabove chart for any of the demonstration years.