A waiver can only apply to benefits that we pay to the beneficiary. When a beneficiary
waives all payments except the SMI premium, we credit the Medicare trust fund with
the amount of the premium payable each month, as if there were no waiver. If an event
occurs that causes payment(s) for a prior month(s) not to be due, the beneficiary
benefits because we paid the SMI premium(s) for that period. Since a waiver can only
apply to monies that are due, the amount of the SMI premium paid is an overpayment,
and the beneficiary must return it. For information on processing waiver of benefits,
see GN 02409.020A.