Attestation of Actuarial Equivalence for RDS Program: A Timely Review of Requirements, Issues, and Qualifications

March 24, 2010
1:00–2:00 p.m. EST

The Medicare Prescription Drug, Improvement and Modernization Act (MMA) of 2003 created a new voluntary prescription drug benefit (Part D) that became effective on Jan. 1, 2006. To encourage employers and unions to maintain retiree health care plans, MMA provided a tax-exempt retiree drug subsidy for qualified retiree health plans. To be eligible for the subsidy, plan sponsors have to apply for the subsidy each year, including an attestation by a qualified actuary that the plan is actuarially equivalent to the Part D benefit. MMA requires that the qualified actuary be a member of the American Academy of Actuaries.

The Academy’s Health Practice Council, Council on Professionalism, and Pension Practice Council, on March 1 circulated a broad communication encouraging those actuaries who provide these attestations to review the relevant qualification standards to ensure they have the appropriate basic education and expertise to do this work. This webcast, sponsored by the Academy’s Council on Professionalism and Health Practice Council, and co-sponsored by the ASPPA, CAS, CCA, and SOA, provided basic information regarding applicable qualification standards to be considered by actuaries, and addressed the more common issues related to providing RDS attestations.

This webinar discussed:

• The minimum qualification requirements set forth in Precept 2 of the Code of Professional Conduct and in the U.S. qualification standards to issue statements of actuarial opinion, including the RDS Program Attestation.
• Guidance on the actuarial equivalence requirements for actuaries who provide services to plan sponsors that receive the retiree drug subsidy.

NOTE ON JBEA CE CERTIFICATE OF ATTENDANCE: You will not be able to receive a certificate of attendance for listening to any recorded webinars. In order to receive a JBEA CE Certificate of Attendance you must attend the live event, follow the instructions provided during the live event, and you must request your certificate by completing the online form within 30 days of attending the live event.

Webcast resources

• View the Health Practice Council Practice Note, March 2006: Attestation of Actuarial Equivalence for Plan Sponsors Accepting a Retiree Drug Subsidy under the Medicare Drug Program.

Speakers

The speakers include:

• Karen Smith, MAAA, FSA, FCA, EA, MSPA
  Chairperson, Committee on Qualifications
• Dale Yamamoto, MAAA, FSA, FCA, EA
  Chairperson, Joint Committee on Retiree Health
• Moderator: Sheila Kalkunte
  Assistant General Counsel

Webcast participants submitted questions during the webcast and the panelists responded to as many of these questions as possible during the time allotted.

CE credit

The American Academy of Actuaries believes in good faith that your attendance at this live webcast, “Attestation of Actuarial Equivalence for RDS Program: A Timely Review of Requirements, Issues, and Qualifications,” constitutes an “organized activity” under the current U.S. Qualification Standards.