The Octagon Health Plan Includes a Typical Indemnification Clause in Its

question 21

Multiple Choice

The Octagon Health Plan includes a typical indemnification clause in its provider contracts. The purpose of this clause is to require Octagon's network providers to

• A) Agree not to sue or file claims against an Octagon plan member for covered services
• B) Reimburse Octagon for costs, expenses, and liabilities incurred by the health plan as a result of a provider's actions
• C) Maintain the confidentiality of the health plan's proprietary information
• D) Agree to accept Octagon's payment as payment in full and not to bill members for anything other than contracted copayments, coinsurance, or deductibles

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Definitions:

Optimal Quantity

The most efficient, cost-effective or beneficial amount or number of something for a specific purpose or condition.

Replenishment Lead Time

The time interval between placing an order and receiving the goods, critical for inventory management.

Supplier Selection

The process by which firms identify, evaluate, and contract with suppliers.

On-time Performance

A measurement of the ability of a service or supplier to deliver goods or services at the scheduled time.