SSA - POMS: GN 02403.030 - Processing Medicare Premium Remittances Received in the Field Office (FO) (2024)

Payment of premiums in the FO should be discouraged for the reasons given in HI 01001.025.

Follow the steps in HI 01001.090 to handle Medicare Premium payments received in the FO, only if the beneficiary insists on paying their premiums in the FO.

1. Interviewer

a. If the premium payment is received:

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  with a Medicare Premium Bill (CMS-500) or ,

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  other than installment payment (this occurs when the DBS cannot produce a bill), or

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  without a bill but with the entire SSN or a Medicare Number and beneficiary name annotated on the check (This occurs when the DBS cannot produce a bill), stamp the remittance “For Deposit Only, CMS.”

  See Also

  Mid-Atlantic Social Security Center, PA, 300 Spring Garden St, Philadelphia, 19123Procedures for Handling Remittances and Premium Payments in the Field OfficeSSA - POMS: NL 00730.200 - Payment Stub UTIS for T2 OverpaymentPOMS GN 02210: Methods of Recovery for Title II, Title VIII, Title XVI, and Title XVIII Overpayments

In DMS or eFOR system, record the remittance under Trust Fund Code "N" (Not Applicable) and Reason Code "H" (CMS Lockbox Premium). These payments are excluded from Social Security Electronic Remittance System (SERS) processing.

CAUTION: Do not deposit a beneficiary payment intended for Medicare premiums into Social Security’s Trust Fund. Depositing the funds into Social Security’s Trust Fund will initiate the Inter-Governmental Payment and Collection (IPAC) system process and will cause an even more significant delay.

b. If the premium payment is received:

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  is a retroactive premium being paid based on an installment agreement,

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  has no SSN or Medicare Number

Process a regular remittance per procedure GN 02403.006 and send it to MATPSC.

In DMS or eFOR systems, record the remittance under Trust Fund Code "O" (Other) and Reason Code "P" (Premium Installments). These payments are excluded from Social Security Electronic Remittance System (SERS) processing

Include a CMS-500 or some other documentation that is clearly marked to alert the PSC to the purpose of the remittance. (See example of CMS-500 below). DMS will generate a payment coupon in addition to the receipt. Give the receipt to the remitter. Mail the CMS-500 payment coupon with the remittance and the FORT to MATPSC.

If a single remittance represents a lump sum retroactive payment and a regular monthly premium, forward the full amount to the Medicare Premium Collection Center lockbox (address below), and let the PSC know what has occurred.

NOTE:The Medicare Number must be clearly shown on the check/money order. The letters B,I,L,O,S and Z aren't used in Medicare numbers because they are similar to certain numerals.

Do not accept a premium payment before the HI/SMI award is prepared, the Medicare Premium Collection Center is not equipped to accept payments before a beneficiary record exists.

c. Enter the payment into the system via eFOR system, and give the automated receipt to the remitter, and explain the advantages of paying their future premiums directly to the Medicare Premium Collection Center: it saves the time and expense of visiting the FO, and also helps hold down administrative costs, which affects the cost of premiums each year. Payments received in the FO could delay the payment process by at least 5-7 days. Additionally, note that credit card payments cannot be accepted in the SSA field office or over the phone. In addition to the receipt, DMS will generate a forwarding instruction sheet indicating how to handle the remittance.

REFERENCE: See MS 01103.006, MS 00303.007 for how to input acceptable remittance and how to obtain an automated FO receipt.

d. Enter the receipt number and the Medicare Number on each check.

e. If the payment is cash, follow steps GN 02403.009B.1.

f. Give the remittance to the remittance clerk.

2. Remittance Clerk

a. Obtain FODRL and compare the remittance to it.

REFERENCE: See MS 01104.009 for how to obtain the FODRL.

b. Hand carry the FODRL and premium remittance to the remittance supervisor.

3. Remittance Supervisor

a. Review any mailroom or reception area logs completed that day. Ensure any premium remittances annotated on a log are included on the FODRL.

b. Record any discrepancies and resolve them with the remittance clerk and/or interviewer.

c. Place all premium remittances in an envelope addressed to:

Seal the envelope and mail it the same day to reduce possible delays as much as possible.

Forward the CMS-500 to the Medicare Premium Collection Center with the remittances; Do not send any FO control forms, photocopies of the DMS receipts, or Receipt File Query Display.

d. If the beneficiary later alleges that he or she was not given credit for the remittance, follow the procedures in HI 01001.375.