Proposed Change to interpretation of Social Security Act regarding Retiree Drug Subsidy


The CMS has issued a proposed rule would adopt an interpretation of section 1860D-22(b) of the Act that would extend the scope of that provision to QRPDPs (as well as PDPs and MAPDs) by revising the definition of “employer-sponsored group prescription drug plan” in §423.454 and by making conforming changes to §423.458.

 Document Excerpt


 This proposed rule would make regulatory revisions based on a change in our interpretation of section 1860D-22(b) of the  Social Security Act. We would interpret this provision as providing us with the authority to “waive or modify” statutory requirements pertaining to the Retiree Drug Subsidy (RDS) program in order to facilitate the offering of a prescription drug plan covering employees or retirees.   


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