LIVONIA—Part D Advisors Inc., a retiree drug subsidy administrator, announced the purchase of some of the assets of Tucson, Ariz.-based InTech Health Ventures LLC. The assets are related to InTech’s administration of Medicare’s Retiree Drug Subsidies (RDS). The privately held firms did not disclose terms of the sale, which closed on March 26.
The RDS program subsidizes retiree healthcare costs by reimbursing plan sponsors up to 28 percent of allowable retiree drug expenses. The program encourages sponsors to continue providing its Medicare-eligible retirees with group drug coverage. RDS is managed by the Centers for Medicare and Medicaid Services.
InTech provided ongoing client support with the RDS process such as periodic filings and reporting. Part D Advisors administers all RDS program components with a special emphasis on reopening applications and compliance.
“The combined strengths of both firms will bring administrative expertise and advanced technical systems to all facets of the RDS market,” said David Alexander, Part D Advisors’ executive vice president. “We’ve carefully reviewed InTech’s procedures and systems and we’re confident InTech’s clients will experience a seamless transition.”
InTech co-founder and partner, John Hoyt, said, “We’re comfortable knowing our clients will benefit by Part D Advisors’ Best-in-Class service and software. They’ve recovered over $1.3 billion in subsidies so InTech clients may receive additional RDS dollars.”
Part D Advisors (www.PartDAdvisors.com), founded in 2005, is the nation’s largest full-service RDS administrator. By examining every prescription transaction and eligibility source, clients experience an average increase of 8 to 15 percent in subsidies. In addition, accuracy and compliance improves for Plan Sponsors.