There will be instances where a beneficiary, or interested third party, objects to
paying fees to the representative payee. Be sensitive to the fact that the beneficiary
will have less available income when fees are collected. Explain the Fee for Service policy (GN 00506.150A) to the beneficiary. (This explanation can be given by mail, by phone, or face-to-face). Inform the individual that as long as the authorized organization follows legal and
SSA guidelines, the organization alone determines from which beneficiaries to collect
a fee, when, and the amount (su to permitted limits). Also inform the individual of
the possibility of locating a new payee or requesting a new capability determination
to see if direct payment can be instituted. Explore these possibilities with the individual
and take appropriate action.
NOTE: If the reason the beneficiary objects to the fees is that his/her SSA payment is
low, you may want to suggest that the beneficiary get in touch with the payee; the
payee may be willing to partially or totally waive the fee on any given month, when
funds are low or exhausted.
Many payees are sensitive to their clients’ financial situation and needs and oftentimes
will not charge a fee if it significantly reduces the amount available for current