01/14/09

Revised Guidance on Rebates and Other Price Concessions

CMS' RDS Center would like to call your attention to a revised RDS Program guidance document on rebates and other price concessions. The January 12, 2009 document incorporates existing guidance published June 6, 2008, but modifies that guidance by: 

• Specifying that there is no requirement, for any RDS plan year, to take into account manufacturer rebates and similar price concessions that are retained by a Pharmacy Benefit Management company (PBM). This approach is consistent with regulations published in the January 12, 2009, Federal Register (74 FR 1494).
• Clarifying that the discussion about how to allocate rebates and similar price concessions among benefit options, by month, applies only to rebates and similar price concessions for Medicare Part D drugs.

To view the revised guidance document, go to the CMS Employer Information page on the CMS Web Site. The document, titled "CMS Retiree Drug Subsidy Guidance: Rebates and Other Price Concessions," is located within the Guidance Document section.

The CMS Employer Information page may also be accessed from the CMS Guidance page of the RDS Program Web Site.

If you have questions about the guidance document, please call (410) 786-0709, and leave a voice mail with your name, the name of your organization, and your telephone number.