R2007-236 AUTHORIZING AGREEMENT WITH BLUE CROSS BLUE SHIELD OF ILLINOIS

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, �. I, � , h ; � amounts then owed the Claim Administrator by the Employer or authorize a reduction equal to such difl'erence from lhe next Claim Settlement due the Claim Administrator l�rom the rmployer. SLC7'ION 7: LA7'E PAYML+'N'1'S AND RLMCI)II;S 7.1 When Em Iv er ails to Pa�. [f the Em lo er fails to a when due an amount rec uired ro be aid to the Claim Adminis- P Y ,l� ) P Y P Y Y 1 P trator under the Agreement,and such default is not cured within ten(10)days of written notice to the Employer,the Claim AdminisU�ator may, at its option: a. Suspend Claim Payments; or b. Terminate the Agreement as of the effective date specified in such notice. 7.2 When Claim Administrator fai[s to timely notify. Pursuant to Section 27 "ENFORCEMENT" of the Agreement, the Claim Administrator's failure to provide the Employer with timely notice of any amount due hereunder shall not be con- sidered a waiver of payment of any amount which may otherwise Ue due hereunder from the Employer. 7.3 I.ate charge. If the Employer fails to make any payment required by the Agreement on a Timely basis,the Claim Admin- istrator,at its oplion,may assess a daily charge for the late remittance from the due date of any amount(s)payable to the � Claim Administrator by the Employer. This daily charge shall be an amount equal to the amount resulting from multiply- ing the amount due times the lesser oi`. u. The rate of.0329°/r per day which equates to an amount of twelve percent (12%a) per annum; or b. The maximum rate permitted by state law. 7.4 Insolne�:cy, In addition, if the Employer becomes insolvent,however evidenced,or is in defauh o1�its obligation to make any "I'ransfer Payment as provided hereunder,or if any other default hereunder has occurred and is continuing, then any indebtedness of the Claim Administrator to the Employer(including any and all contractual obligations of the Claim Ad- ministrator to the Employer)may be ofi'set and/or recouped and applied toward the payment of'the Employer's obliga- tions hereunder, whether or not such obligations, or any part thereof, shall then be due the Employer. S�C1'ION 8: I+INANCIAL OBLIGATIONS UPON AGI2��M�NT TCRMINAI'ION 8.1 Run-off Claims. The �mployer hereby acknowledges that on the date of termination of the Agreement in accordance with the provisions of either Section 7 of this Eahibit or Section 13 of the Agreement,there may be an undetermined but substantial number of'Claims for services rendered or furnished prior to that date which have not been submitted to the Claim Administrator for reimbursement and also an undetermined but substantial number of Claims submitted for reim- bursement which have not been paid by the Claim Administrator("Run-Ofl�Claims").The Employer shall be responsible for the reimbursement of all Run-Off Claims, whether or not such Claims have been submitted, or whether or not Net Claim Payments calculated on the basis of Claim Payments for such Claims have been made by the Claim Administrator, as of the date of termination, including, but not limited to, Claim Payments and/or Net Claim Payments made in accor- dance with MSP laws,and for the payment of the Termination Administrative Charge and any other applicable service , charges as indicated in the most cunent Fee Schedule specifications of Section 1 of this Exhibit and any applicable Sup- plemental Charge(s)pursuant to the processing of such Claims after the Agreement's termination date. Further, if a Cov- , ered Person is an Inpatient at the time his or her coverage under the Plan tenninates, the Plan shall provide benefits f'or Covered Services which are provided by and regularly charged for by a hospital or other facility Provider until the Cov- ered Person is discharged or until the end ot'the Covered Person's benefit period,whichever occurs first("�xtended Bene- I, fits"). The �mployer shall be liable to the Claim Administralor for all Claim Payments, Net Claim Payments and the applicable service chaiges for such Extended Benefits. i 8.2 Corresponding TransferPayments. In consideration of the Claim Administrator's continuing to make Claim Payments I in accordance with Section 4 of this Exhibit for Run-Off Claims,the Employer shall continue to make Transfer Payments I for all such Claims paid by the Claim Administrator up to the Final Settlement outlined below. I 8.3 Fiical Setllenzent. A Final Settlement shall be made within sixty(C>0)days after the last day of the Run-0ff Period.This � Final Settlement shall compare Ihe Transfer Payments against the Claim Settlement Totals for all Rw�-Off Claims paid I I('S('IL nSi�IZev.G/07 -?3-