TN 5 (03-03)
GN 00506.230 Funds That Cannot Be Used To Collect a Fee
The following types of benefits cannot be used for collecting fees for service:
1. Conserved Benefits
A beneficiary's conserved funds (savings/checking accounts, bonds, etc.) cannot be used to collect fees.
Benefits left over from the prior month will be considered conserved funds if they are deposited or left in the bank account. Conserved funds transferred to SSA from a prior payee and reissued to the beneficiary cannot be used to collect fees for service.
The payee can collect the fee anytime during the current month, before the next month’s check arrives. From the moment the next recurring benefit check is received, the payee cannot collect fees from the prior month’s check. If the recurring benefits are direct deposited, the date the new electronic fund transfer is posted to the account will be the cut off date for collection of the past month’s fee.
It is important that the beneficiary and the FFS payee discuss a monthly budget in advance to ensure a better administration and fee collection schedule.
2. Personal Needs Allowance
Amount allowed for an institutionalized beneficiary's personal needs (commonly called personal needs allowance) cannot be used for collecting fees.
NOTE: Amounts required to be set aside as a personal needs allowance may be used when calculating the maximum amount of the fee that can be collected, but may not be used to pay the fee.
1. Beneficiary in a Medicaid institution
An SSI beneficiary is admitted to a Medicaid institution. His monthly benefit amount is $30. The Medicaid institution is the FFS payee. In this instance, a fee cannot be collected from the SSA benefits.
2. Fee collected after PNA has been budgeted
A beneficiary receives a $ 375 monthly SSDI check. His personal needs allowance is budgeted to be $60 per month. The beneficiary also has a DAA Condition. The FFS organization is authorized to collect the higher DAA fee. The payee can collect a fee amount of 10 % or $37.50. This fee has to be collected out of the $315 after the personal needs allowance amount has been deducted.
GN 00605.067D.3 How To Evaluate Payee Responses About Use of Benefits
GN 00605.375 Processing Cases When a Final Accounting is not Required
GN 00603.055 Transfer of Conserved Funds