Under the Retiree Drug Subsidy (RDS) program, the Centers for Medicare and Medicaid Services (CMS) reimburses Plan Sponsors the equivalent of 28% of all Allowable Retiree Drug Expenses that fall between the federally designated Cost Threshold amount and the Cost Limit after Actual Cost Adjustments are removed. This amount is limited per individual, which, like the cost threshold and cost limit, varies from year to year. While Plan Sponsors have other options when it comes to retiree healthcare benefits, below are just a sampling of the benefits they gain from participating in the RDS program.