LIVONIA, Mich.--(BUSINESS WIRE)--Part D Advisors, Inc., the nation’s largest administrator of Medicare’s Retiree Drug Subsidies (RDS), announced the purchase of select assets from Health Decisions, Inc. in Plymouth, Michigan. The assets are related to Health Decisions’ Dependent Eligibility Audit and other eligibility verification services and not other Health Decisions lines of business.
The RDS program subsidizes retiree healthcare costs by reimbursing qualifying Plan Sponsors up to 28% of allowable retiree drug expenses. RDS is managed by the Centers for Medicare and Medicaid Services.
Health Decisions has been performing eligibility verification services without a single employee appeal since 1993. Their Dependent Eligibility Verification team, in-house Call Center, proprietary software and proven approach will now be under the PDA umbrella. PDA stores and backs-up all data in a Michigan-based data center with compliance ratings of SOC 1, SOC 2, and SOC 3.
“Health Decisions has an excellent reputation,” said David Alexander, Part D Advisors’ Executive Vice President. “Both organizations excel at handling enrollment data for employers, trusts, and governmental employers and combining our experience will bring synergies to the benefits marketplace that include exceptional response rates and high ROI.”
Judy Mardigian, Health Decisions CEO, said, “We are excited to entrust our Dependent Eligibility Verification services to Part D Advisors. They are a top-quality organization, and this sale will enable an even higher level of service for our clients and the benefits eligibility marketplace.”
While the privately held firms did not disclose terms of the sale, the transaction comes on the heels of PDA’s select asset purchase of InTech Health Ventures, LLC, an RDS administrator in Tucson. The Health Decisions sale closed on May 3, 2019.
About Part D Advisors
Part D Advisors (www.PartDAdvisors.com), founded in 2005, is the nation’s largest full-service RDS administrator. Using its expertise and patent pending software, the firm handles every aspect of the very complicated RDS process for Plan Sponsors. PDA customers see an average increase of 8-15% in subsidies in addition to increased accuracy and program compliance.
The Michigan-based firm is the only RDS administrator certified by American Institute of CPAs -- System & Organization Controls. Part D Advisors has reviewed claims and subsidy filings from clients in 34 states including state and local governmental employers, Taft-Hartley health funds, private employers, third party administrators and pharmacy benefit managers. The firm maintains all necessary documentation and data for six years, as required by the RDS program.