Countdown to the RxDC Report Submission Deadline: Are You Prepared?
May 31, 2024
Group health plans and insurance issuers must submit detailed information on prescription drugs and healthcare spending to the federal government annually. This submission, known as the "prescription drug data collection" (RxDC) report, must be completed by June 1 each year and cover the previous calendar year's data. As the next RxDC report deadline approaches on Saturday, June 1, 2024, employers must ensure compliance by taking proactive steps and coordinating with third-party vendors.
Steps to Comply with the RxDC Reporting Requirement
Employers must follow several key steps to ensure compliance with the RxDC reporting requirement. These actions will help ensure the RxDC reports are submitted accurately and on time, avoiding potential penalties and ensuring alignment with federal regulations. Below is a detailed guide on each of these essential steps.
Confirm Submission Arrangements with Third Parties
Reach Out to Issuers, TPAs, or PBMs:Employers should contact their insurance issuers, Third-party Administrators (TPAs), or Pharmacy Benefit Managers (PBMs) to confirm that these entities will submit the RxDC files for their health plans. Establishing clear communication is key to ensuring the timely and accurate submission of necessary data.
Respond Promptly to Information Requests
Provide Necessary Information: Employers must respond quickly to any information requests from the third parties responsible for submitting the RxDC files. This includes supplying enrollment data, premium information, and other relevant details that may be required to complete the RxDC submission.
Update Written Agreements
Include Reporting Responsibilities: Ensure that written agreements with third parties reflect the responsibility for RxDC reporting. For completely insured plans, this agreement ensures that if the issuer fails to submit the report, the issuer, not the plan, is held accountable.
Monitor Compliance for Self-Insured Plans
Oversight of Third-Party Submissions: Employers should contact third-party providers to verify their commitment to submitting the RxDC files for their health plans. Establishing transparent communication is crucial for ensuring the prompt and accurate submission of necessary information.
Understanding RxDC Reporting Requirements
The RxDC reporting requirement mandates that group health plans and health insurance issuers annually submit detailed information on prescription drugs and healthcare spending to the federal government. This reporting, known as the Prescription Drug Data Collection (RxDC) report, is critical for regulatory compliance and provides crucial insights into healthcare utilization and expenditure trends.
Annual Reporting Obligation
All group health plans, including fully insured, self-insured, and level-funded health plans, must submit RxDC reports. The report includes files requiring specific plan-level information, such as plan year dates, enrollment data, premium details, and files with detailed medical and pharmacy benefits information.
Submission Process
RxDC reports must be submitted through an online portal maintained by the Centers for Medicare and Medicaid Services (CMS). The CMS RxDC website provides updated reporting instructions and other resources to assist with the submission process.
Utilizing Third Parties for RxDC Reporting
Leveraging third-party expertise can streamline the reporting process and ensure accurate and timely submission of RxDC reports.
Responsibilities of Fully Insured and Self-Insured Plans
- Fully Insured Plans: If the issuer of a fully insured group health plan fails to submit the RxDC report despite being required to do so by written agreement, the issuer—not the plan—violates the reporting requirements.
- Self-insured Plans: The legal responsibility for RxDC reporting remains with the self-insured plans plan. Employers must ensure compliance by monitoring third-party submissions and maintaining clear agreements.
Streamlining RxDC Compliance: CBC's Proven Approach for Effortless Reporting
As the RxDC report deadline approaches, CBC is committed to supporting employers in meeting their reporting requirements efficiently and accurately. By utilizing our platform, employers can streamline the process of confirming arrangements with third parties, responding promptly to information requests, updating agreements, and monitoring compliance. Our user-friendly interface and comprehensive resources ensure employers have everything they need to navigate the RxDC reporting process seamlessly.
Take action now to prepare for the RxDC report submission and ensure compliance with federal requirements. Contact Custom Benefit Consultants (CBC), Inc. today to learn more and access our valuable resources!
