Effective in 1986, SMI premiums varied in cases where there were increases in an individual's
benefit, due the Cost Of Living Adjustment (COLA) not being sufficient to cover the
increase in his/her SMI premium.
This provision requires premium amounts be reduced so that benefit amounts due January
3rd i.e., the December benefit, (after considering reductions for the premium and lower dollar rounding), will not be less than the beneficiary's benefit on December 3rd i.e., the November
benefit. The provision applies only to individuals who were entitled to benefits for
the months of November and December and who actually received corresponding checks
in December and January. Once a variable premium is established, it remains in effect
for the full calendar year.
NOTE: The provision was not applied in 1986 because there was no premium increase that year.