EXHIBIT A
TO
AGREEMENT WITH
City of Nashua
This Exhibit is Effective April 7, 2017
COMPENSATION
PDA’s compensation for the services provided pursuant to the Agreement shall be a Performance
Bonus with respect to the Reconciled Plan Year:
Drug Subsidy Services
Performance Bonus, If the Plan Sponsor receives a larger Medicare Drug Subsidy as a result of the
New Final Reconciliation prepared by PDA than the Medicare Drug Subsidy received as a result of
the original Final Reconciliation filed for the Reconciled Plan Year, then the Plan Sponsor will pay
PDA twenty percent (20%) of such increase in the Medicare Drug Subsidy for the Reconciled Plan
Year. If there is no increase in the Medicare Drug Subsidy received by the Plan Sponsor, there shall
be no Performance Bonus for that Subsidy Application.
To illustrate how the Performance Bonus is calculated, assume (1) that the Plan Sponsor received
$100,000 as the Medicare Drug Subsidy as a result of the original Final Reconciliation filed for the
Reconciled Plan Year, (2) that the Plan Sponsor received $150,000 as the total Medicare Drug
Subsidy as a result of the new Final Reconciliation prepared by PDA for the Reconciled Plan Year,
(3) a $50,000 increase. The Performance Bonus would be $10,000 (($150,000-$100,000) x 20%)).
GENERAL PROVISIONS
Delinquent Accounts, Accounts and invoices not paid by the later of the end of the month, or within
30 days of billing, are considered delinquent and are subject to a monthly service charge of 1.5
percent (1.5%) of the delinquent amount. Besides late fees and service charges, subsequent subsidy
filings could be delayed at the sole discretion of PDA if accounts are beyond 30 days in arrears.
Failure to Timely Comply with the RDS Program. It is the duty and responsibility of the Plan
Sponsor to be cognizant of the various due dates for the RDS Program (e.g., Final Reconciliation)
and the potential penalties for being late. If a deadline is missed due to Plan Sponsor or Authorized
Representative negligence or tardiness, PDA shall not refund any paid service fees and will not
accept any financial responsibility due to such negligence.
Demands for Overpayment. Upon Final Reconciliation, CMS may determine an overpayment for
the relevant Plan Year was made to the Plan Sponsor and demand return of such overpayment. The
Plan Sponsor shall be financially responsible for the return of any and all overpayments made by
CMS. To the extent CMS determines an overpayment and such amount was included in determining
the Performance Bonus, PDA shall immediately reimburse the Plan an amount equal to the portion
of the Performance Bonus based upon the overpayment.
City of Nashua 9 SA Revised March 2016
