Common use of MCP Administrative Load Clause in Contracts

MCP Administrative Load. In return for providing more efficient care to enrollees, there are additional administrative costs the MCPs incur. In addition to these administrative costs, the State allows the MCPs a load for risk charges and profit. The final capitation rate is the result of netting out the savings achieved through case management and adding the MCP administrative/profit load. Mercer reviewed the MCP reported administrative experience and overall financial results to determine an amount for administration of 12% of premium for existing plans with 1% of this administrative load contingent upon MCPs meeting administrative requirements. For plans new to managed care in Ohio, the administrative load and at-risk amounts will be set as follows: • First Plan Year • Administration of 13% of premium • 0% at risk • Second Plan Year • Administration of 12% of premium • 0% percent at risk • Third Plan Year • Administration of 12% of premium • 1% at risk

MCP Administrative Load. In return for providing more efficient care to enrollees, there are additional administrative costs the MCPs incur. In addition to these administrative costs, the State allows the MCPs a load for risk charges and profit. The final capitation rate is the result of netting out the savings achieved through case management and adding the MCP administrative/profit load. Mercer ▇▇▇▇▇▇ reviewed the MCP reported administrative experience and overall financial results to determine an amount for administration of 12% of premium for existing plans with 1% of this administrative load contingent upon MCPs meeting administrative requirements. For plans new to managed care in Ohio, the administrative load and at-risk amounts will be set as follows: • ▪ First Plan Year • – Administration of 13% of premium • – 0% at risk • ▪ Second Plan Year • – Administration of 12% of premium • – 0% percent at risk • ▪ Third Plan Year • – Administration of 12% of premium • – 1% at risk

MCP Administrative Load. In return for providing more efficient care to enrollees, there are additional administrative costs the MCPs incur. In addition to these administrative costs, the State allows the MCPs a load for risk charges and profit. The final capitation rate is the result of netting out the savings achieved through case management and adding the MCP administrative/profit load. Mercer ▇▇▇▇▇▇ reviewed the MCP reported administrative experience and overall financial results to determine an amount for administration of 12% of premium for existing plans with 1% of this administrative load contingent upon MCPs meeting administrative requirements. For plans new to managed care in Ohio, the administrative load and at-risk amounts will be set as follows: • - First Plan Year • - Administration of 13% of premium • - 0% at risk • - Second Plan Year • - Administration of 12% of premium • - 0% percent at risk • - Third Plan Year • - Administration of 12% of premium • - 1% at risk