Interim Payment

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Interim Payment

This page contains answers to Common Questions about the Interim Payment Process. Review this page to learn about how to submit interim costs and an interim payment request and more. For additional information refer to the Interim Payment section of the RDS User Guide.

What is the Interim Payment Process?

ANSWER: The Interim Payment process is a method the Plan Sponsor uses to submit interim cost reports and make interim payment requests for Qualifying Covered Retirees on an approved RDS application. If the Monthly, Quarterly, or Interim Annual Payment Frequency was selected during the Application Submission Process, Plan Sponsors may request an interim payment.

Answer ID: 900-1
Date Posted: 10/17/2014

What is the interim payment agreement?

ANSWER: The interim payment agreement is the agreement for payment authorization that displays for the Payment Requester when submitting an interim payment request. The interim payment agreement must be completed in the RDS Secure Website. The text of the interim payment agreement is available for reference on the Agreements page.

Answer ID: 900-2
Date Posted: 10/17/2014

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When can I submit interim costs?

ANSWER: Interim cost reports may be submitted on applications that meet all of the following conditions:

  • Application must be approved.
  • Payment Setup must be complete for the application (Step 6 of Payment Setup must have a "Complete" status).
  • The Payment Frequency associated with the application must be Monthly, Quarterly, or Interim Annual.
  • The first plan month has passed.

Note: Applications with an Annual Payment Frequency are not eligible for interim payment requests and may only submit final costs during Reconciliation. Payment Frequency is selected during the Application Submission Process and cannot be changed after the application is submitted and will remain in effect for the plan year.

After Payment Setup is complete for the application, the Interim Costs action is available in the Actions dropdown menu on the Application List page.

Answer ID: 900-3
Date Posted: 10/17/2014

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Who can submit interim costs?

ANSWER: There are two types of sources that can submit interim costs: Plan Sponsors and Vendors. A Cost Reporter may be the Account Manager, Plan Sponsor Designee, Vendor, or Vendor Designee. A Vendor may report costs using the Data Entry submission method on the RDS Secure Website or by the Mainframe transmission method. For additional information about who can submit interim costs, refer to User Roles and Responsibilities for Submitting Interim Costs.

Answer ID: 900-4
Date Posted: 10/17/2014

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How do I submit interim costs?

ANSWER: During the Interim Payment process, Cost Reporters submit interim costs to CMS' RDS Center by either manual Data Entry on the RDS Secure Website or by Mainframe to RDS Center Mainframe through CMS Extranet. For more information, refer to Submit Interim Costs.

Answer ID: 900-5
Date Posted: 10/17/2014

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When can I submit an interim payment request?

ANSWER: An interim payment may be requested on an application when the following conditions are met:

  • The application is approved.
  • Payment Setup is complete.
  • The application has an Interim Payment Frequency and the maximum number of payment requests has not been met:
    • Monthly - The Monthly Payment Frequency allows Plan Sponsors to make a maximum of twelve (12) interim payment requests for a plan year. The first payment request can be submitted after one month from the start of the plan year once interim costs are reported. Although twelve (12) interim payments are allowed, a Plan Sponsor may choose to submit fewer than twelve.
    • Quarterly - The Quarterly Payment Frequency allows Plan Sponsors to make a maximum of four (4) interim payment requests for a plan year. The first payment request can be submitted after one quarter since the start of the plan year once interim costs are reported. Although four (4) interim payment requests are allowed, a Plan Sponsor may choose to submit fewer than four.
    • Interim Annual - The Interim Annual Payment Frequency allows Plan Sponsors to make a maximum of one (1) interim payment request for a plan year. The interim annual payment request cannot be made until one day after the Plan Year End Date.
  • New interim costs were submitted for at least one Benefit Option since the last payment request and the Payment Requester completed the review for the new interim costs.
  • At least 16 days have passed since the last payment approval or 31 days have passed since the last payment request; whichever is later.
  • To request another interim payment, the Next Payment Request status displays "Payment Can Now Be Requested." If a payment request is in progress, the Plan Sponsor cannot request payment.

Note: Applications with an Annual Payment Frequency are not eligible for interim payment.

Answer ID: 900-6
Date Posted: 10/17/2014Last Updated: 08/15/2015

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Who can submit an interim payment request?

ANSWER: The Account Manager, Authorized Representative, and Designee can be designated as a Payment Requester by being assigned the Request Payment privilege. For more information about Payment Requesters and the Request Payment privilege, refer to User Roles and Responsibilities for Submitting an Interim Payment Request.

Answer ID: 900-7
Date Posted: 10/17/2014

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How do I submit an interim payment request?

ANSWER: For step-by-step instructions to complete review of Benefit Option interim costs and build and submit an interim payment request, refer to Submit an Interim Payment Request.

Answer ID: 900-8
Date Posted: 10/17/2014

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