Employer & Union Retiree Drug Subsidy
The Retiree Drug Subsidy
The retiree drug subsidy (RDS) is one of several options available under Medicare that enables employers and unions to continue assisting their Medicare eligible retirees in obtaining more generous drug coverage. It is generally considered the easiest and most straightforward of the available options, and can often be implemented with little or no benefit design changes to current coverage. The primary web site for the RDS program, including the online tool for submitting subsidy applications, is hosted by the RDS Center (see link below under "Related Links Outside of CMS"). This page provides links to guidance and application instruction documents relating to the RDS, as well as overview documents.
Downloads
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CMS Retiree Drug Subsidy Guidance: Qualifying Covered Retirees - 05/30/08 (PDF, 45KB) (PDF) -
CMS Retiree Drug Subsidy Guidance: Actuarial Equivalence Standard - 05/30/08 (PDF, 42KB) (PDF) -
CMS Retiree Drug Subsidy Guidance: Rebates and Other Price Concessions – 01/12/09 (PDF, 37KB) (PDF) -
Actuarial Equivalence Sample Calculation Worksheet - 04/08/05 (Zipped Excel, 68KB) (ZIP) -
Overview of Retiree Drug Subsidy Option (PDF, 31KB) (PDF) -
How To Extract Certain Medicare Part B Costs From RDS Payment Requests - 7/23/2007 (PDF, 52KB) (PDF) -
CMS Retiree Drug Subsidy Guidance: Transitioning RDS Retirees to a Group Health Plan that uses a VEBA as a Funding Mechanism - 10/30/08 (PDF, 20KB) (PDF) -
Treatment of Account-Based Health Arrangements under the Medicare Modernization Act 06/15/05 (PDF, 55KB) (PDF) -
Appendix: Sample Calculation - 04/07/05 (PDF, 11KB) (PDF)