Interim Payment

The Interim Payment Process is a method the Plan Sponsor uses to submit interim cost reports and make interim payment requests for Qualifying Covered Retirees on an approved RDS application. All RDS applications’ payment frequency is set to a maximum 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).

Note: Are you a Plan Sponsor working with a Vendor, or are you a Vendor representative new to the RDS Program? The RDS Welcome Kit offers the following Vendor-related materials:

• Communicating With Your RDS Vendor: This resource for Plan Sponsors is part of the Account Manager Quick Start Guide. Visit this page to learn how to communicate with your Vendor throughout the application lifecycle and get some tips for success.
• Vendor Quick Start Guide: This guide for new RDS Vendor representatives offers tips and resources for getting started as a Vendor representative, managing retiree enrollment, and cost reporting.