When a SMI enrollee is in current payment status, upon being awarded monthly benefits,
the enrollee's first benefit check will be reduced, if necessary, to take into account
any unpaid accrued SMI premiums. (Any excess prepaid premiums will be refunded as
soon as possible.) Thereafter, a single month's premium deduction will ordinarily
be made from the benefit for each subsequent month. For example, an enrollee already
entitled to monthly benefits is awarded SMI coverage beginning 3/00, and receives
their first check at the beginning of 5/00, premiums of $45.50 for the months 3/00
- 5/00 are deducted from the first check. The check received in 5/00 is the benefit
check for April, but because premiums due for a month are deducted at the beginning
of that month, the premium for May is withheld. If the enrollee has already paid premiums
through June, the excess amount paid will be refunded. Subsequent checks are reduced
by the amount of the premiums for the months in which the checks are received. Applicants
should be advised of this policy at the time they file their claim for monthly benefits
or when enrolling for SMI whichever is later. (If a beneficiary is in suspense status
immediately following an initial award of monthly benefits or of SMI, see HI 01001.045A. If the beneficiary is in deferred status following the initial award, see HI 01001.045C.)