Cost reporting is the process of reporting cost data for Qualifying Covered Retirees (QCRs) on an approved RDS application. Interim cost data may be reported throughout the plan year if the Plan Sponsor chooses to submit interim payment requests. Final cost data must be reported for an Annual Payment and final Reconciliation. All RDS applications have a maximum Payment Frequency of monthly interim payments, consistent with the general payment rules regarding timing set forth in 42 C.F.R. 423.888(b)(1). Although 12 interim payment requests are permitted, a Plan Sponsor may choose to submit fewer than 12 interim payment requests, or forego interim payments and instead choose to submit one final payment request during Reconciliation as described in 42 C.F.R. 423.888(b)(2)(ii).
Federal law requires that cost data is submitted only for the QCRs, corresponding Subsidy Periods, and the Benefit Options in which each QCR is enrolled. Refer to Prepare Cost Data, Submit Interim Costs, and Manage Final Costs for additional information.
Cost reporting assignments must be completed in Payment Setup prior to submission of cost data.