Generally, those individuals who are required to pay their premiums by direct remittance
are sent a Notice of Medicare Premium Payment Due (CMS-500) which reflects the months
covered by the bill and the amount of premiums due. A "Billing Notice Date" appears
in the upper left-hand portion of the CMS-500. This date is the billing selection
date. All premium payments received up to that date have been included on the direct
billing record. If any premiums are due, the period and the amount owed are reflected
on the bill and, where appropriate, the potential termination date. (See HI 01005.800
for an exhibit of the CMS-500.)
No premium billing notice will be mailed when the premium amount owed is less than
$10.00. Instead, the balance owed will be added to the next regular monthly or quarterly
bill.
Example: If an enrollee receives a quarterly premium bill for $131.40 and pays only $125.00,
the additional $6.40 will be added to the bill the enrollee receives for the next
quarter. The enrollee will then owe $137.80.