When an authorized Fee-for-Service (FFS) organization files to be payee for additional beneficiaries, and we select them as payee, we must determine whether the beneficiaries have a Drug Addiction or Alcoholism (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, see subsection B.1. in this section.

If a creditor, the organization must wait for the FO's determination and follow the procedure in subsection B.2. in this section.

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 07409.020. On the SSA-11-BK, use the Remarks section to show:

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  that the organization is authorized to collect fees for services;

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  if a fee will be collected from the beneficiary; and

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  whether the organization is a creditor of the individual.

If more than one FFS organization applies to serve as payee for the same beneficiary, determine which payee applicant would best serve the interests of the beneficiary.

For factors to consider when evaluating payee applicants, see GN 00502.130.

Appoint one payee for all benefits to which the beneficiary is entitled. For additional information on this subject, see GN 00502.183B.3.

When the beneficiary has a DAA condition give preference to an organizational payee, GN 00502.105C.

If the organization is not a creditor:

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  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.

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  Use the notice provided in NL 00703.770.

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  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 the organization's FFS status, follow the instructions in GN 00506.150.

If the organization is a creditor:

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  Determine whether permitting the organization to collect fees would otherwise adversely affect the beneficiary, see GN 00506.100B.3.b.

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  Document the determination on the Make Note screen.

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  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.

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  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.