400 Bad Request: Understanding Direct Fee Payment for Claimant Representation

The Social Security Administration (SSA) has a unique policy regarding attorneys and non-attorneys who are eligible for direct fee payment for their claimant representation. This policy is designed to ensure that claimants receive fair and timely benefits while also covering the costs of attorney representation.

Eligibility Criteria

The SSA defines a claimant as an individual or family who has applied for Social Security benefits. To be eligible for direct fee payment, claimants must meet certain criteria, including:

  1. \* They must have an attorney representation claim filed with the SSA through the Electronic Federal Tax Payment System (EFTPS) or the Online Application and Claims Electronically (OAPEX) system.
  2. \* The attorney must be licensed to practice in the state where the claimant resides or has residency status.
  3. \* The attorney representation claim must be filed within one year of filing the OAPEX application or EFTPS application, whichever is earlier.

Benefits and Costs

The direct fee payment policy aims to balance the costs of attorney representation with the need for timely benefit payments. Claimants receive a percentage of their benefits as reimbursement for attorney fees, while the SSA also bears the cost of these fees.

In 2017, the SSA issued an executive order that expanded eligibility criteria for direct fee payment and established new guidelines for claimant representation. The policy also provides for reduced fees in cases involving disability claims or where the claimant is not receiving other forms of Social Security benefits.

Conclusion

The SSA's direct fee payment policy is designed to promote fairness and efficiency in the administration of Social Security benefits. By providing a way for attorneys to represent claimants, the policy aims to ensure that claimants receive the assistance they need while also covering the costs associated with their representation.

Source Information

The document in question is available on the SSA's website at:

https://www.ssa.gov/foia/resources/proactivedisclosure/2018/FY%202017%20Attorneys%20and%20Non-Attorneys%20Eligible%20for%20Direct%20Fee%20Payment%20for%20Title%202%20Claimant%20Representation.pdf