Common use of Over/Underpayment Clause in Contracts

Over/Underpayment. If either party discovers an error in the payment of State Rebates by Manufacturer, it shall notify the other of such error. The parties shall attempt to reconcile all differences through discussion and negotiation; if that attempt fails, the parties will resolve their dispute in accordance with generally applicable procedures followed by the Department or CMS in disputes concerning National Rebates. Manufacturer shall deduct any overpayment from subsequent State Rebates payable under this Agreement. In the event that no subsequent State Rebates are payable, the Department will refund any such overpayment to Manufacturer within thirty (30) days after its acknowledgment of the overpayment. Manufacturer will remit any underpayment to the Department within thirty (30) days after Manufacturer’s acknowledgment of such underpayment.

Over/Underpayment. If either party discovers an error in the payment of State Supplemental Rebates by Manufacturer, it shall notify the other of such error. The parties shall attempt to reconcile all differences through discussion and negotiation; if that attempt fails, the parties will resolve their dispute in accordance with generally applicable procedures followed by the Department or CMS in disputes concerning National Rebates. Manufacturer shall deduct any overpayment from subsequent State Supplemental Rebates payable under this Agreement. In the event that no subsequent State Supplemental Rebates are payable, the Department will refund any such overpayment to Manufacturer within thirty (30) days after its acknowledgment of the overpayment. Manufacturer will remit any underpayment to the Department within thirty (30) days after Manufacturer’s acknowledgment of such underpayment.