While the group may act on behalf of a beneficiary in forwarding Medicare premium
payments, the beneficiary, nevertheless, is responsible for making them. The formal
group merely acts as his/her agent. Any notice sent to the agent is considered notice
to the beneficiary and the beneficiary suffers the consequences in the event of default
(nonpayment or incorrectly identified payment) on the part of the premium payer. However,
relief should be considered when formal group payment is involved in Medicare Part
B termination (see HI 01001.295 and HI 01001.300).
The beneficiary is obligated to promptly notify both the Formal Third Party Group
Payer and Centers for Medicare & Medicaid Services (CMS) and the Social Security Administration
(SSA) of any change of address.