Announcements

In the coming months, CMS’ RDS Center will implement an update to the sequestration policy, whereby the mandatory two percent (2%) payment reduction will be applied at each interim payment request rather than applying the reduction only to the final payment. 

Changes have been made to the email accounts used by the Centers for Medicare & Medicaid Services (CMS’) Retiree Drug Subsidy (RDS) Program. Effective immediately, Plan Sponsors can only use the RDS@cms.hhs.gov email address to communicate with the RDS Program. 

On September 1, 2023, CMS’ RDS Center will implement two new Reason Codes that will be used to communicate RDS eligibility information during retiree data transfers.

On Friday, March 31, 2023, the Centers for Medicare & Medicaid Services (CMS) announced the Cost Threshold and Cost Limit amounts that apply to Plan Sponsors participating in CMS' Retiree Drug Subsidy (RDS) Program, with qualified prescription drug plans that end in 2024, as well as the parameters for Medicare Part D plans in 2024. Pursuant to 42 CFR 423.886(b)(3), the cost threshold and cost limit for qualified retiree prescription drug plans are updated using the Annual Percentage Increase.

Do you know where to go when you have questions about RDS Reconciliation? The answers to your questions are available 24-7 on the RDS Public Website.

The H.R. 5376 Inflation Reduction Act of 2022 (IRA) was signed into law by President Biden on August 16th, 2022. The IRA makes improvements to Medicare that will expand benefits, lower drug costs, keep prescription drug premiums stable, and improve the strength of the Medicare program. CMS’ RDS Center wants to hear from you—the RDS users—about the impact of IRA on the RDS Plan Sponsor community. We are currently recruiting volunteers for Listening Sessions on this topic. If you are a current, active RDS Secure Website user assigned to at least one RDS Plan Sponsor account and/or application and are interested in participating in this initiative, please review the material below and email CMS’ RDS Center by Monday, April 3, 2023, to express your interest in volunteering. 

Authorized Representatives: Confirm your access to the RDS Secure Website now! To avoid missed program deadlines and delayed subsidy payments, ensure that your RDS user accounts and Multi-Factor Authentication (MFA) are active and that you are able to access the RDS Secure Website today!

As a requirement of Reconciliation, Plan Sponsors must finalize their application's Covered Retiree List (CRL) and submit final cost data to CMS' RDS Center. Please review the following guidance and resources for successfully reporting final costs during Reconciliation.

In the coming months, CMS’ RDS Center will implement two new Reason Codes that will be used to communicate RDS eligibility information during retiree data transfers. These codes will support the conditions defined in 42 CFR § 423.4 stating that a retiree is not eligible for RDS subsidy when: the retiree is not legally present in the United States and/or the retiree is incarcerated.

As a requirement of Reconciliation, Plan Sponsors must finalize their application's Covered Retiree List (CRL) and submit final cost data to CMS' RDS Center. Please review the following guidance and resources for successfully finalizing your application’s retiree count during Reconciliation. 

In preparation for the final Reconciliation payment request, the Plan Sponsor agrees to the CRL in the Reconciliation: Finalize Covered Retirees step by completing the following tasks: