06/12/08

Updated Guidance on Key RDS Topics

CMS' RDS Center would like to call your attention to RDS guidance documents that have recently been updated with important information. One document discusses the RDS actuarial equivalence standard, while the other discusses who can be a qualifying covered retiree under the RDS Program.

Updated Guidance on the Actuarial Equivalence Standard

In May 2008, CMS updated a guidance document that is now titled "CMS Retiree Drug Subsidy Program Guidance: Actuarial Equivalence Standard." This document incorporates previously existing guidance published in April 2005 in a document that was titled "CMS Guidance on the Actuarial Equivalence Standard for the Retiree Drug Subsidy," and adds two new sections that discuss (1) the period of time the attestations must cover, and (2) submission of an actuarial attestation upon a material coverage change. The document also clarifies the circumstances under which it is permissible to combine benefit options for purposes of the actuarial equivalence net test.

Updated Guidance on Qualifying Covered Retirees

In May 2008, CMS updated a guidance document that is now titled "CMS Retiree Drug Subsidy Program Guidance: Qualifying Covered Retirees." This document incorporates previously existing guidance published in December 2005 in a document that was titled "Frequently Asked Questions Regarding: Qualifying Covered Retirees for the Retiree Drug Subsidy," concerning who can be a qualifying covered retiree under the RDS Program. The updated guidance document includes new guidance that encourages RDS Plan Sponsors to clearly and regularly give their retirees information about the consequences of retirees' Medicare Part D enrollment on existing employment-based retiree coverage.

To view the two updated guidance documents, go to the CMS Employer Information Page on the CMS Web Site. The CMS Guidance on the Actuarial Equivalence Standard, and the CMS Guidance on Qualifying Covered Retirees, are both located within the Guidance Documents section.

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

RDS Secure Web Site participants were notified by e-mail in May 2008 of the publication of these updated guidance documents.

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