A fee-for-service payee collects $23 per month in fees from a state agency as payment
for payee services in that month for each beneficiary it serves.
Due to the payment, the payee must reduce the fee it charges its beneficiaries by
$23 for each beneficiary. For example, a beneficiary with a DAA Condition receives
$400 per month. Since the payee can only collect the lesser of 10% of the combined
Title II and Title XVI monthly payment or the amount listed in GN 00506.220, the maximum total fee that the payee may collect is $40 (i.e., 10% of $400 is $40).
Accordingly, in this instance, the payee may collect a fee from the beneficiary of
$17 ($40 minus $23 equals $17).