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Sep 28, 2011

One User Fee Goes Down

From today's Federal Register:
We provide limited fee-based Social Security number (SSN) verification service to private businesses and other requesters who obtain a valid, signed consent form from the Social Security number holder. ...
To use [this system], interested parties must pay a one-time non-refundable enrollment fee of $5,000. Currently, users also pay a fee of $5.00 per transaction in advance of services. We agreed to calculate our costs periodically for providing [these] services and adjust the fees as needed. ...
Based on the most recent cost analysis, we will adjust the fiscal year 2012 fee to $1.05 per transaction. New customers will still be responsible for the one-time $5,000 enrollment fee.

3 comments:

  1. RE: User Fees

    First—tone down the hyperbolic rhetoric of your first post; charging claimants to file claims/appeals will not happen.

    SSA provides many “services” that are not part of its core business—the right check to the right person on the right day. For example in the state where I worked for many years senior citizens and the disabled can get discounted fishing and hunting licenses. Needless to say our offices see a significant, seasonal business providing FREE benefit verifications for license applicants. Issuing hunting/fishing licenses is NOT part of SSA's core business so a fee seems appropriate.

    SSA already has the ability to charge for replacement SSN cards but the rules are so wishy-washy that no one pays any fee, even after exceeding the “lifetime limit” on free replacement cards. Tightening/strengthening those rules would be appropriate.

    Even if SSA initiates a limited set of fees, the agency will eventually hire a consulting firm to structure a study to prove that collecting the fee costs more than the revenue it generates.

    Perhaps SSA should deduct a charge from the fees it withholds for attorney representatives, since SSA is acting as the collection agency for the attorney.

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  2. "Perhaps SSA should deduct a charge from the fees it withholds for attorney representatives, since SSA is acting as the collection agency for the attorney."

    Anon above: They already do.

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  3. "Perhaps SSA should deduct a charge from the fees it withholds for attorney representatives, since SSA is acting as the collection agency for the attorney."

    Anon above: They already do.

    Yeah, but it was originally supposed to be I believe 6 percent of the fee, but I'm sure the lawyers lobbied at got it capped at $75. At the same time the maximum attorney fee was raised from $4,000 to $5,300.

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