The following is the text from the email distributed by the RDS on June 4, 2008:

The Centers for Medicare & Medicaid Services’ (CMS’) Retiree Drug Subsidy (RDS) Center is sending "Sample Client, Inc." this notice to inform you that CMS has decided to issue a modification of the RDS requirement to report rebates and similar price concessions, which may affect certain RDS applications with plan years beginning any time between July 1, 2006 and December 31, 2006 (inclusive of those two dates).  The RDS application listed below has been identified as one of these applications.

Application Number: 15XXX

Plan Sponsor ID: 9XXX

Plan Year Start Date: July 1, 2006

Plan Year End Date: June 30, 2007

In 2007, CMS issued guidance on calculating and reporting rebates and similar price concessions under the RDS program. The guidance specifically addressed rebates and similar price concessions retained by a Pharmacy Benefit Manager (PBM).  The guidance stated that RDS Plan Sponsors must report such rebates for RDS applications with plan years beginning on or after July 1, 2006.  On April 18, 2008, CMS issued a reminder to all RDS Plan Sponsors concerning this requirement.

Upon further consideration, CMS has decided that the requirement to report rebates and similar price concessions retained by a PBM applies only to RDS applications with plan years beginning on or after January 1, 2007 (i.e., it does not apply to RDS applications with plan years beginning on any date between July 1, 2006 and December 31, 2006, inclusive of those two dates). Therefore, the requirement to report rebates and similar price concessions retained by a PBM does not apply to the RDS application referenced above (although it is permissible to report such rebates for that application).

Please be aware that all other requirements relating to the reporting of rebates and other price concessions do apply to the RDS application referenced above and to all RDS applications, regardless of the application’s plan year start date.

CMS will soon be revising and reissuing its guidance on this topic to reflect the above-stated revision to the applicability date. You will be notified by e-mail when the revised guidance is published.

If you need further information regarding this notice, please call (410) 786-0709 and leave a voice mail with your name, the name of your organization, and your telephone number.

Sincerely,

CMS’ RDS Center