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Timing of rate change notices

Question: 
Our vendor says that we have to send a rate change notice 210 days before the first payment at the adjusted level. This can't be right. We have no idea what the adjusted rate will be that far before the adjustment date.
Answer: 

Every time the rate changes and the payment is adjusted you must send a regular rate change notice at least 60 days before the first payment at the adjusted level. The first time the rate changes two notices are required - the regular notice, mentioned in the previous sentence, and an initial rate change notice that must be sent at least 210 days before the first payment at the adjusted level. The rate and payment amounts in the initial notice are estimated.
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First published on 07/08/2018

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