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Medicare Retiree Drug Subsidy Frequently Asked Questions

Why am I unable to view costs if Blue Cross Blue Shield of Michigan submitted a mainframe cost report?

The most common reason is BCBSM is not designated as the vendor to report costs. After a plan sponsor's application is approved at CMS, six steps must be completed. Steps 4 and 5 require input of BCBSM as the vendor to report costs, in addition to assigning vendor ID A0013 to each BCBSM unique benefit option identifier.

Designees assigned the report cost privilege will also have the ability to view cost data for the benefit options to which they are associated.

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Why did BCBSM report costs for fewer retirees than submitted in my initial retiree upload file to CMS?

CMS reviews the file of Medicare-eligible retirees submitted by plan sponsors to determine which retirees are eligible for subsidy. BCBSM processes claims for CMS-approved eligible retirees only. Eligible retirees are those appearing in CMS' response files and covered retiree list.

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How long are costs available to build a payment request?

Cost reports are available until a payment request is complete. The number of payments is determined by the payment frequency selected at the time of application.

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Are the Retiree Drug Subsidy and Part D Subsidy the same program?

No. The Part D Subsidy is a program administered by the Social Security Administration that reduces out-of-pocket costs paid by those Part D enrollees who have limited income and resources. The subsidy provides reduced monthly premiums and other cost-sharing assistance.

For more information on the Part D subsidy, please contact the U.S. Social Security Administration at ssa.gov.

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If you have additional questions please e-mail the BCBSM Retiree Drug Subsidy Team.