RDS Services LLC Helping Plan Sponsors Avoid the Risk Losing Early Retiree Reinsurance Program Subsidy

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As posted on the ERRP.gov website, plan sponsors participating in the Early Retiree Reinsurance Program (ERRP) may be at risk of losing received subsidy, if claims lists aren’t error free. RDS Services LLC offers assistance to any plan sponsor concerned with not meeting all ERRP requirements.

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On Monday, October 3, 2011, CMS began providing specific, claim line-level feedback to sponsors who submit Claim Lists through a new, fully automated review system. All Claim Lists submitted on or after October 3 must be error-free in order for the plan sponsor to be able to submit a reimbursement request, and then be approved for payment. Each Claim List submitted by a plan sponsor must pass through this review system, which includes five levels of audit. If an error occurs at any level, the claims list is rejected before reaching the next level. If a Claim List is determined to be invalid and cancelled from the system, the sponsor must resubmit a corrected Claim List.

By March 30, 2012, to substantiate any ERRP reimbursements received to date, plan sponsors MUST submit an up-to-date and error-free Claim List and submit a corresponding reimbursement request in support of reimbursements received prior to October 3, 2011. Per the ERRP Common Question H1100-15, last updated 09/23/2011, “if a Plan Sponsor fails to do so by the deadline, then the reimbursed amount will be determined to be unsubstantiated, and CMS will initiate processes to collect such amount back from the Plan Sponsor.”

Given the complexity of this review system, many plan sponsors are struggling to provide an error-free Claim List to support the ERRP reimbursements they have received to date. RDS Services is, and has been, successfully aggregating data and submitting error-free claims for our clients under this new automated review system. Our database program will aggregate your vendor(s) data, detect errors, format data ERRP ready, and ensure that you submit an error-free Claim List prior to the March 30, 2012 deadline.


RDS Services, LLC was founded in 2005 when the Centers for Medicare & Medicaid Services (CMS) introduced the Retiree Drug Subsidy (RDS) program. We are subsidy recovery specialists, working to manage the RDS program and more recently the Early Retiree Reinsurance Program (ERRP) for participating employers. Our application processing, member-list management and data-aggregation services assist both private and public sector clients maximize subsidy recoveries under RDS and ERRP. If you’re interested in learning more about our services, please contact us at (888) 797-8274 or http://www.rdsservices.us


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Mark Manquen

Jayne Brown
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