Health Net 2010 Annual Report Download - page 183

Download and view the complete annual report

Please find page 183 of the 2010 Health Net annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 197

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197

Final Execution Copy
with supporting detail from Supplier’s estimating tools to allow Health Net to understand and validate Supplier’s proposed revisions.
(ii) After the revised staffing is determined, the Parties shall equitably adjust the Production Support Charge to reflect the
revised staffing, which adjustment shall equal the applicable Individual Application Production Support Charge for the In-Scope
Application removed unless the Parties agree otherwise.
(c) The Production Support Charge assumes the MC400 In-Scope Applications will be sunset by December 31, 2010 and their
functions migrated to ABS. For purposes of this Section, “sunset” means the date on which Health Net desires to cease receiving full
Production Support Services and to receive the more limited support described below in Section 4.3(c)(iii). Health Net shall provide
Supplier with reasonable notice (at least 30 days) if it desires to change the sunset date to a date other than December 31, 2010.
(i) If any of the MC400 In-Scope Applications are sunset prior to December 31, 2010, then the Production Support Charge
shall be reduced by an amount equal to the Individual Application Production Support Charges for such MC400 In-Scope
Applications during the period from (A) the sunset date, until (B) December 31, 2010.
(ii) If any of the MC400 In-Scope Applications require full Production Support Services after December 31, 2010, then the
Production Support Charge shall be increased by an amount equal to the Individual Application Production Support Charges for such
MC400 In-Scope Applications during the period from (A) December 31, 2010, until (B) the date Health Net no longer requires full
Production Support Services for such MC400 In-Scope Applications.
(iii) The Parties anticipate that Health Net will require a reduced level of Production Support Services for the MC400 In-
Scope Applications in the years following the sunset and migration to ABS. Prior to the sunset date, the Parties will agree upon the
staffing required to provide such support, and calculate the charges for such support by multiplying the Supplier Personnel FTEs in
such staffing plan by the applicable T&M Rates in Exhibit C-6.
(a) The Production Support Charge includes a baseline of Productive Hours that Supplier shall perform each calendar quarter on
Minor Enhancements requested by Health Net (“Baseline Minor Enhancement Hours”). Subject to Section 4.4(b), the Baseline
Minor Enhancement Hours included in the Production Support Charge are as follows:
(i) There are no Baseline Minor Enhancement Hours in 2008.
(ii) In 2009, the Baseline Minor Enhancement Hours shall increase as follows each calendar quarter as In-Scope
Applications are transitioned:
(iii) In 2010, and each Contract Year thereafter, the Baseline Minor Enhancement Hours shall equal *** per calendar
quarter, unless adjusted pursuant to Section 4.4(b).
4.4 Minor Enhancements
Calendar Year 2009
Q1 2009 Q2 2009 Q3 2009 Q4 2009
Baseline Minor Enhancement
Hours
***
***
***
***
Schedule C (Char
g
es)
C - 4
Health Net / Co
g
nizant Confidential