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;
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.
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.