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Employer Retiree Drug Subsidy


The Retiree Drug Subsidy

The retiree drug subsidy (RDS) is one of several options available under Medicare that enables employers and unions to continue assisting their Medicare eligible retirees in obtaining more generous drug coverage. It is generally considered the easiest and most straightforward of the available options, and can often be implemented with little or no benefit design changes to current coverage. The primary website for the RDS program, including the online tool for submitting subsidy applications, is hosted by the RDS Center (see link below under "Related Links Outside of CMS").  This page provides links to guidance and application instruction documents relating to the RDS, as well as overview documents.

Guidance Documents:
CMS Retiree Drug Subsidy Guidance: Rebates and Other Price Concessions – 06/06/08 (PDF, 47KB)
How To Extract Certain Medicare Part B Costs From RDS Payment Requests - Updated 7/23/2007 (PDF, 52KB)
CMS Retiree Drug Subsidy Guidance: Qualifying Covered Retirees 05/30/08 (PDF, 45KB)
Treatment of Account-Based Health Arrangements under the Medicare Modernization Act 06/15/05 (PDF, 55KB)
CMS Retiree Drug Subsidy Guidance: Actuarial Equivalence Standard 05/30/08 (PDF, 42KB)
Appendix: Sample Calculation 04/07/05 (PDF, 11KB)
Actuarial Equivalence Sample Calculation Worksheet 04/08/05 (Zipped Excel, 68KB)

Paperwork Reduction Act:
OMB 83-i Form (PDF, 48KB)
RDS Application (PDF, 213KB)
RDS Plan Sponsor Application Instructions (PDF, 73KB)
Supporting Statement for the Retiree Drug Subsidy (RDS) Application and Instructions (PDF, 30KB)

Final Regulations:
RDS Final Regulations, January 28, 2005 (PDF, 2MB)
Medicare Modernization Act Statute (PDF, 1.1MB)

Overview Documents:
Overview of Retiree Drug Subsidy Option (PDF, 31KB)
The Retiree Drug Subsidy: Why Employers and Union Plan Sponsors Should Consider It (5 Easy Steps)(PDF, 51KB)
Related Links Inside CMS
Creditable Coverage Overview Page
Employer & Union Plan Sponsor Information Overview Page
Employer Group Waiver Plans Overview Page
Subscribe/Unsubscribe to CMS Employer Mailing Lists
Related Links Outside CMSExternal Linking Policy
RDS Center Website


Page Last Modified: 06/06/2008 3:27:38 PM
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