I just noticed this in Social Security's Program Operations Manual Series (POMS) §SI 00206,200.A.1 (emphasis added):
It is longstanding SSI policy to deduct the expenses of obtaining income from that income before counting it in the SSI eligibility and payment computations. See SI 00830.100. In all title II and title XVI offset cases these expenses include any attorney or nonattorney representative fees that apply to the title II benefits, even if part of the fee is determined based on title XVI past-due benefits. These expenses may also include out-of-pocket expenses that are not part of the fee but are paid by or billed to the claimant.I know how to notify Social Security of the out of pocket expenses paid by my clients under the fee petition process, but how am I supposed to notify them of the costs under the fee agreement process, which is used about 98% of the time? It looks to me as if Social Security never developed a process for this and that claimants are getting shortchanged as a result. I cannot be the first person to notice this. What is the history on this?
4 comments:
It's simple - send the DO a copy of the bill you sent your client and when it was paid. Just like any other expense/I & R verification done to determine countable income. The attorney should know the law and make sure their client receives the proprer amount - especially since this will affect SSI only. There is no effect on the title iI claim.
I learn something new here every day. The attnys I knew in CA never did this that I know of. And, CR's may not be familiar with this policy out in the boonies where I worked. Never fear, I'll get this on the grapevine for everyone's benefit.
I worked over 30 years in FOs and never heard of an attorney charging the claimant for out of pocket expenses that were "not part of the fee". Most attorneys sign an agreement that the amount paid from back pay under the fee agreement is the ONLY amount the claimant will be charged. Like the first poster said, submit a copy of the bill you sent your client for the things not included in the fee agreement.
In response to the other Anonymous's comment about having never heard in 30 years of an attorney charging the claimang for out of pocket expenses that were not part of the fee, he or she is unfamiliar with industry practice despite his or experience at SSA. The standard fee agreement in the industry includes the right to recover expenses and the standard rep fee notice includes language from SSA acknowledging the practice. In my experience the cost of medical records usually runs between $150-$500 in a typical case. I also must send everything via certified mail, because the SSA seems to lose everything I mail without proof of receipt. As in any legal matter, those costs are passed on to the client.
I routinely advise my client in my closing letter to make sure and inform SSA of the reimbursed expenses billed to them and repaid to them so that they can notify
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