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 full withholding is causing hardship.
If an overpayment is being recovered by full withholding when SMI premium liability
begins, the premium amount will be deducted first and the balance of the monthly benefit
credited toward the overpayment.
If a beneficiary protests full withholding and qualifies for partial adjustment, the
partial adjustment rate will be established before any deduction for SMI premiums.