ANCHORAGE, Alaska (AP) – The Social Security Administration is tightening regulation of Alaska’s representative payee businesses, saying they operate outside the law by charging fees to handle money for disabled residents.
The Anchorage Daily News reported Thursday that for-profit payee services have been notified their business model is illegal and they face audits.
A 2018 law expanded monitoring of the businesses that have existed in Alaska since the 1990s.
Officials say the companies take monthly fees to manage benefit payments for clients and coordinate expenditures such as rent payments and grocery purchases.
The businesses have been told to convert to nonprofits, which will prevent charging more than $43 per month, half of what most charge.
Advocates say about 800 vulnerable Alaskans could be left without someone to help manage their money.
Information from: Anchorage Daily News, http://www.adn.com