The Retiree Drug Subsidy (RDS) program reimburses plan sponsors for a portion of qualifying drug expenses for their Medicare-eligible retirees. But many plans are receiving a reduced subsidy because of incomplete or inaccurate cost reporting for the subsidy. This shortfall can be remedied by conducting an audit of the cost reporting that goes beyond the standard RDS reconciliation.
Reproduced with permission from Benefits Magazine, Volume 52 Number 7, pages 46-50, July, 2015, published by the International Foundation of Employee Benefit Plans (www.ifebp.org), Brookfield, Wisconsin. All rights reserved. Statements or opinions expressed in this article are those of the author and do not necessarily represent the views or positions of the International Foundation, its officers, directors or staff. No further transmission or electronic distribution of this material is permitted. Subscriptions are available for purchase by contacting us at 888-334-3327, option 4 or www.ifebp.org/subscriptions.