When a deceased beneficiary, uninsured or insured, is due a Part B premium refund
payable to a Social Security beneficiary on the same or different record, process
the payment through the Manual Adjustment Credit and Award Data Entry (MACADE) system.
On the payment history (HST) screen;
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•
Use an "AA" special entry equal to the premium refund amount with the special indicator
code (SIC) “PH” to relieve the payee of any tax liability.
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•
Explain the refund in the enclosure notice block (ENB) by using the appropriate ADJ
paragraph found in NL 00720.004.
NOTE: When a manual adjustment credit and award process (MADCAP) action contains an “AA”
entry with the “PH” SIC, a daily payment history update system (PHUS) alert with the
“054 QUES CPDRD” exception will be generated. Correct the PHUS alert using instructions
in SM 00630.254B and annotate the non-taxable payment with an EVNT 038 NONTAX PMT
using instructions in SM 00630.238.
Once SSA pays the survivor(s) the excess Part B premiums, remove any previously posted
direct billing system (DBS) overage by using a CMS-1592 and entering the appropriate
record identification code (RIC). For information on the CMS-1592, see SM 00711.200.
For information on RIC descriptions, see SM 00711.220.