News & Information

CCH® UNEMPLOYMENT INSURANCE — 12/03/09

SSA proposes modification of accumulated benefits transfer regulations for representative payees

The Social Security Administration is proposing to modify existing regulations so as to allow a representative payee who will no longer be serving in that capacity to transfer accumulated benefit payments and interest directly to the beneficiary if the SSA determines that it would be in the beneficiary's best interest. Allowing direct transfer would conserve the SSA's resources and provide faster access to beneficiaries who have become capable of managing their own benefits.

Background

The SSA appoints a representative payee to receive a beneficiary's benefit payments when the agency has determined that the beneficiary is unable to manage his or her own financial affairs. The payee may only use the funds on behalf of the beneficiary and must conserve or invest any remaining funds.

Under current regulations, if a representative payee is no longer serving in that capacity, he or she must return the conserved funds to the SSA or to a successor payee designated by the agency. Regs. &sec;404.2060 and &sec;416.660 bar a representative payee from directly transferring funds to a beneficiary. The SSA notes that this requirement can be particularly problematic for beneficiaries transitioning out of foster care who might need access to conserved funds to pay for rent and other necessities.

Change will streamline operations

Under the proposal, Regs. &sec;404.2060 and &sec;416.660 would be modified to permit a payee to transfer conserved funds to a beneficiary upon approval by the SSA. According to the agency, “[a]llowing direct transfer would conserve our scarce administrative resources and provide faster access to beneficiaries who have become capable of managing their own benefits.”

The public is invited to submit comments on the proposed amendments by December 14, 2009, to any one of the addresses listed in the official notice of proposed rulemaking. That notice was published in the October 14, 2009, issue of the Federal Register (74 Fed. Reg. 52706).

Social Security announces Medicare premiums, deductibles for 2010

The Department of Health and Human Services has announced that the standard Medicare Part B premium will increase to $110.50 in 2010, up from $96.40 in 2009. A relatively small number of Medicare Part B enrollees with higher incomes, approximately 5%, will pay a higher premium based on those incomes. The actual amount depends upon the extent to which an individual beneficiary's income exceeds $85,000 (or a married couple's income exceeds $170,000). The maximum premium could be as much as $353.60. The Part B deductible will be $155 in 2010.

The Medicare Part A deductible, which is a beneficiary's only cost for the first 60 days of inpatient hospital care, will increase by $32 to $1,100 for 2010. The skilled nursing facility daily coinsurance payment, which is payable after 20 days of care, will increase by $4.00 to $137.50 per day. The Part A premium will be $461 in 2010. The Part D (prescription drug) premium will be $30 for beneficiaries who stay in their current plans, an increase of $2 over last year, according to the Centers for Medicare and Medicaid Services (CMS Press Release, 10/1/2009; CMS Fact Sheet, 10/16/2009).