TN 5 (03-03)

A. Policy

1. Organization applies - Determining DAA and creditor status

When an authorized FFS organization files to be payee for additional beneficiaries, and we select them as payee, we must determine whether the beneficiaries have a DAA condition and whether a creditor relationship exists between the organization and the beneficiaries. If not a creditor, the organization can begin to collect a fee in the first month for which it is appointed payee and receives payment on behalf of the beneficiary. If a creditor, the organization must wait for our determination.

2. Systems input

The following information about the authorized organization should be collected in the remarks section of the SSA-11-SG in eRPS, using the Remarks for the Application (SSA-11) screen in accordance with MS INTRANETERPS 009.020. On the SSA-11-BK, use the Remarks section to show:

• that the organization is authorized to collect fees for services;

• if a fee will be collected from the beneficiary; and

• whether the organization is a creditor of the individual.

3. More than one organization applies

If more than one payee applies for fee for service status, determine which payee would best serve the interests of the beneficiary and appoint that organization as payee for all of the beneficiary entitlements.

When the beneficiary has a DAA condition give preference to an organizational payee.

NOTE: Appoint one payee for all benefits to which the beneficiary is entitled. See GN 00502.183 B.4 for additional information on this subject.

B. Procedure

Complete an SSA-11-SG via the RPS for each new beneficiary for whom the organization requests to be payee. If the RPS is not available use a paper form SSA-11-BK. Follow instructions in GN 00506.300A.2 for the appropriate remarks to be used in a paper SSA-11.

NOTE: For Selection issues of a Representative Payee follow instructions in GN 00502.001 Overview of Representative Payee Selection

1. Organization not a creditor

If the organization is not a creditor:

• Notify the beneficiary that the organization has been authorized to collect a fee. In an initial payee appointment situation, verify that no protest is received to the advance notice.

• Use the notice provided in NL 00703.770.

• Send a copy of this letter to the organization as notification of the individual's DAA condition status, if applicable.

If the individual or interested third party objects to the payee selection because of Fee for Services, follow the instructions in GN 00506.150.

NOTE: The organization will begin to collect fees the month after approval as a FFS and upon receipt of the payee selection notice and beneficiary payments.

2. Organization is a creditor

If the organization is a creditor:

• Determine whether permitting the organization to collect fees would otherwise adversely affect the beneficiary. (See GN 00506.100B.3.b.)

• Document the determination on the Make Note screen.

• Notify the organization of the decision using the exhibit in NL 00703.950. Time the release of the notice to coincide with the release of the payee selection notice, if possible.

• Notify the beneficiary if the organization is permitted to charge a fee by using the notice provided in NL 00703.770. Send the organization a copy of this notice as well.

C. References

NL 00703.950 Notice to Creditor Organization

GN 00602.030 Payments of Past Due Debts

GN 00504.240 Payee or Name Change for a Group of Beneficiaries

GN 00502.001 Overview of Representative Payee Selection

GN 00502.183 Making a Payee Appointment Determination