Any part of a Title II benefit needed to repay SMI premiums will be applied to the
premium obligation (including any arrearage) before any withholding to recover an overpayment.
This partial adjustment for SMI is effectuated without the need for a protest from
the beneficiary or a decision that the 10% monthly benefit withholding is causing
hardship.
If an overpayment is being recovered by 10% monthly benefit withholding when SMI premium
liability begins, the premium amount will be deducted first and the balance of the
monthly benefit credited toward the overpayment.