Retiree Drug Subsidy (RDS) Application and Instructions (CMS-10156)

Under the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 and implementing regulations at 42 CFR 423 Subpart R, Plan Sponsors e.g., employers or unions) that offer prescription drug coverage to their qualifying covered retirees are eligible to receive a 28% tax-free subsidy for allowable drug costs. In order to qualify, a Plan Sponsor must submit a complete application to CMS with a list of retirees for whom it intends to collect the subsidy

The latest form for Retiree Drug Subsidy (RDS) Application and Instructions (CMS-10156) expires 2027-12-31 and can be found here.