The Social Security Administration (SSA) has announced an important change that will impact many of your clients. Beginning September 30, 2025, federal benefit payments will transition almost entirely to electronic delivery in accordance with Executive Order 14247, Modernizing Payments To and From America’s Bank Account. Paper checks will be phased out, and the temporary check option for new claims is no longer available.
What This Means for Brokers
As a trusted resource, you can help ensure clients avoid any disruptions in their benefit payments:
- Encourage clients still receiving paper checks to switch to direct deposit or the Direct Express® prepaid debit card before September 30.
- New beneficiaries should set up electronic payment options as part of the claims process.
- Waivers are possible but limited — beneficiaries requesting an exemption must file with the U.S. Treasury by calling 1-800-967-5042.
Why Electronic Payments Matter
- Faster access to funds
- Increased security compared to paper checks
- Greater convenience without mail delays or bank visits
Enrollment Options
- Direct Deposit: Beneficiaries with checking or savings accounts can use a my Social Security account to manage direct deposit information.
- Direct Express® Card: A safe prepaid debit card for those without bank accounts. Enrollment is available at 1-800-333-1795 or usdirectexpress.com.
As brokers, sharing this update with your Medicare clients ensures they remain informed, prepared, and supported during this transition.