2011-273 Co. Mgr. - RDS Services, LLC - Agreement for Early Retiree Reinsurance Program Services

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EXHIBIT D CAVEATS Plan Sponsor acknowledges, understands and agrees to the following with respect to Reinsurance Subsidy services: 1. RDS may conclude that the Plan does not qualify for the Reinsurance Subsidy because it fails a Reinsurance Program test or for some other reason.Unless there is a straightforward fix(which RDS will inform Plan Sponsor of),RDS' Reinsurance Subsidy engagement will end, with no residual duty or obligation for RDS (RDS will try and make this determination as soon as possible following the signing of this Agreement); 2. Plan Sponsor has been given a written copy of the HHS Reinsurance Subsidy Application, has reviewed the Plan Sponsor Agreement and has determined that it is willing to sign the Plan Sponsor Agreement; 3. Plan Sponsor understands that the Reinsurance Program is a temporary program administered by HHS and that only limited funds have been made available for Plan Sponsors applying. Applicants are not guaranteed reinsurance subsidy upon submission of Application. Moreover, the amounts will vary substantially and it is not possible to accurately predict either the amount or even the frequency of such payments. Plan Sponsor's actual Reinsurance Subsidy payments are calculated one eligible retiree("ER")at a time,based on that retiree's qualifying claim utilization; 4. In generating benefit cost information for purposes of requesting Reinsurance Subsidy payments, RDS may need to filter out certain claims that may not qualify under the Reinsurance Program and are therefore ineligible for Reinsurance Subsidy payments. Due to impracticalities that are inherent in any filtering process(e.g.,whether a claim should or should not be filtered out in this process may depend on factual circumstances that could not be known by RDS or any other vendor), RDS will adopt, unless instructed otherwise by Plan Sponsor, a conservative approach that errs in favor of excluding claims that potentially may NOT be covered under Section 1102 of the PPACA of 2010 and any regulations forthcoming. This conservative approach is intended to minimize the possibility of Plan Sponsor improperly receiving more payments than is legally permitted under the Reinsurance Subsidies program; 5. In generating benefit cost information for purposes of requesting Reinsurance Subsidy payments, RDS will need to report to HHS any rebates or other provider discounts, credits or like amounts received by the Plan Sponsor or the Plan; 6. The Subsidy Application must be filed in a timely manner to ensure a greater likelihood of success receiving subsidy. For this reason, it is critical that Plan Sponsor and vendors provide RDS with necessary information in a timely manner; and 7. RDS will provide a report to Plan Sponsor matching any subsidy funds received with any Early Retirees of Plan Sponsor for whose claims the subsidy was paid. RDS will also keep Plan Sponsor up to date on the progress of receipt of any subsidy amounts.