The following is the text from the email distributed by the RDS on May 30, 2008:

The Centers for Medicare & Medicaid Services (CMS) has updated two Retiree Drug Subsidy (RDS) Program guidance documents with important information. One document discusses the RDS actuarial equivalence standard, while the other discusses who can be a qualifying covered retiree under the RDS Program.

Updated Guidance on the Actuarial Equivalence Standard

On May 30, 2008, CMS updated a guidance document that is now titled "CMS Retiree Drug Subsidy Program Guidance: Actuarial Equivalence Standard." This document incorporates previously existing guidance published in April 2005 in a document that was titled "CMS Guidance on the Actuarial Equivalence Standard for the Retiree Drug Subsidy," and adds two new sections that discuss (1) the period of time the attestations must cover, and (2) submission of an actuarial attestation upon a material coverage change. The document also clarifies the circumstances under which it is permissible to combine benefit options for purposes of the actuarial equivalence net test.

Updated Guidance on Qualifying Covered Retirees

On May 30, 2008, CMS updated a guidance document that is now titled "CMS Retiree Drug Subsidy Program Guidance: Qualifying Covered Retirees." This document incorporates previously existing guidance published in December 2005 in a document that was titled "Frequently Asked Questions Regarding: Qualifying Covered Retirees for the Retiree Drug Subsidy," concerning who can be a qualifying covered retiree under the RDS Program. The updated guidance document includes new guidance that encourages RDS Plan Sponsors to clearly and regularly give their retirees information about the consequences of retirees' Medicare Part D enrollment on existing employment-based retiree coverage.

To view the two updated guidance documents, go to the CMS Employer Information Page on the CMS Web Site. The CMS Guidance on the Actuarial Equivalence Standard, and the CMS Guidance on Qualifying Covered Retirees, are both located within the Guidance Documents section.

The CMS Employer Information Page may also be accessed from the CMS Guidance page of the RDS Program Web Site.

If you have questions about these updated documents, please call (410) 786-0709, and leave a voice mail with your name, the name of your organization, and your phone number.

Sincerely,

CMS’ RDS Center