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 the beneficiary's 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.