HARVARD PILGRIM HEALTH CARE, INC.
PURCHASER SERVICE AGREEMENT
This Agreement, made effective and entered into this 1° day of July, 2002_(Effective
Date) by and between CITY OF NASHUA (hereinafter referred to as “Purchaser*), and
HARVARD PILGRIM HEALTH CARE, INC., a corporation organized under the laws of the .
Commonwealth of Massachusetts (hereinafter "HPHC"), - -
WHEREAS, Purchaser has adopted one or more self-insured health care plan{s)
(hereafter the "Plan(s)") for eligible employees, retirees, and the dependents thereof under ~
which such persons are enittled to certain health service benefits (hereafter "Covered ,
Services"); ,
WHEREAS, Purchaser desires to purchase certain administrative and provider
contracting services for operation of its Plan from HPHC as set forth below: “4
WHEREAS, HPHC desires to provide such administrative and provider contracting
services for Purchaser’s Plan; and ,
‘ WHEREAS, a copy of the Plan instrument(s) is/are attached hereto as Attachment EL
NOW THEREFORE, in consideration of the promises and mutual covenanis contained
herein the receipt and sufficiency of which are hereby acknowledged, it is hereby agreed by
and between the parties as follows:
|. SERVICES AND COMPENSATION
14 Administrative Services. HPHC shall perform for Purchaser the administrative
services set forth in Attachment A, “Administrative Services" attached hereto and incorporated
herein by reference (hereafter “Services”), for the operation of the Plan. HPHC shall perform
these Services in accordance with the reasonable exercise of its business judgment and all
applicable statutory and regulatory requirements, Purchaser shall at all times retain ultimate
control over the assets and operations of the Plan and final responsibility for the obligations of
the Plan imposed by law. HPHC shall perform the functions described in this Agreement in
accordance with policies, directives, and controlling documents of the Plan.
1.2 Provider Contracting Services. To the extent any Plan provides for use of
contracting providers by Members, then through contractual arrangements (“Provider
Contracting Services"), HPHC shall establish a network of physicians, hospitals and other
health care providers or entities, contracting with such providers for the provision of Covered
Services from health care providers ("Contracting Providers") to Members. A current list of
Contracting Providers will be provided to Purchaser by HPHC from time to time as required,
either in print or electronic media. Purchaser shall compensate Coniracting Providers for
Covered Services in accordance with the Contracting Provider Compensation Provisions
attached hereto as Attachment B, and incorporated herein by reference.
FORM#PSO1 08/17/2002
