Applying for the Retiree Drug Subsidy (RDS) program provides plan sponsors with a tax-free subsidy payment of 28 percent of allowable retiree prescription drug costs attributable to gross prescription drug costs between $250 and $5,000 (for 2006) per qualifying covered retiree.

The Account Manager begins the process by obtaining a Plan Sponsor ID via the RDS secure website. Once the Plan Sponsor ID has been created, either the Account Manager or the Authorized Representative can begin a new application.

No. All RDS applications must be submitted online through the secure RDS website.

For plan years ending in 2006, RDS applications must be submitted on or before September 30, 2005. For subsequent years, applications must be submitted 90 days prior to the start of the plan year.

No. One consolidated list of retirees must be submitted to the RDS Center for each application.

Plan sponsors elect to receive payments on a monthly, quarterly, interim annual or annual basis. When a monthly or quarterly payment frequency is elected, the plan sponsor may submit up to twelve (12) or four (4) interim payment requests, respectively. Actual frequency of payments will depend on the submission of the payment requests. For more information please visit the RDS website at www.rds.cms.hhs.gov.

Reasons for denial of an RDS application include, but are not limited to: the submission of deliberately false or misleading information in the application; the submission of the application after the application deadline; or the Plan Sponsor's placement on the General Service Administration Debarment list or the Department of Health & Human Services' Office of Inspector General Exclusion list.

The RDS Center will send an email to the Authorized Representative, Account Manager and Designee(s) (if applicable) informing them of the status of their application. If an application is denied, the email will instruct those individuals to visit their account at the RDS website for the reasons for the denial. In all instances, the RDS help line is available for further assistance. The RDS help line can be reached by calling (877) RDS-HELP or (877) 737-4357.

An Account Manager is chosen by the Plan Sponsor. He/She will assist with the coordination of the RDS application process. An Account Manager may be an employee of the Plan Sponsor, or an individual with whom the Plan Sponsor has a contractual arrangement to assist it with the application process. It is important to note however, that only one individual at a time can serve in the role of Account Manager.

Social Security Numbers are required for authentication purposes.

A Designee(s) is an individual chosen by either the Authorized Representative or Account Manager to assist with the completion of the Retiree Drug Subsidy (RDS) application, data submission, and payment request processes. The Designee(s) is only able to perform functions that have been delegated by the Authorized Representative or Account Manager.