Common use of Savings Calculation Detail Clause in Contracts

Savings Calculation Detail. After each year of the Demonstration, the Evaluation Contractor will perform a calculation to determine whether the Demonstration achieved savings, and the amount of any savings. The calculation will determine the difference in per beneficiary per month (PBPM) spending found between the demonstration group and a target amount determined by trending demonstration group expenditures in a two-year pre-Demonstration base period by the change in costs of the comparison group. The savings calculations will use an actuarial methodology to provide CMS with the resulting Medicare and Medicaid savings achieved. The calculation will reflect any increase in Federal Medicaid spending, including fees or enhanced FMAP for health home services, associated with beneficiaries in Washington or the comparison group. However, federal Medicaid spending for both Washington and the comparison group will be adjusted to remove the impact of the enhanced FMAP under the Families First Coronavirus Response Act in response to the COVID-19 public health emergency.