(See HI 00801.251B).
R-SMI coverage ordinarily begins with the first month of R-HI entitlement unless refused
within 2 months after the month the individual receives notification of the deemed
SMI enrollment. R-HI beneficiaries will generally utilize very costly health care
services from the beginning of their R-HI coverage and therefore, have little to gain
by refusal of SMI since most dialysis expenses are covered by SMI rather than by HI.
However, many individuals being awarded R-HI retroactively may have difficulty paying
for the retroactive coverage if confronted by a large premium arrearage. Accordingly,
equitable relief provisions are applicable to premium arrearage situations of 6 or
more months (of retroactive R-SMI coverage). The beneficiary must be given a choice,
since he/she or some treating centers may often be willing to pay the premium arrearage
because of the far greater R-SMI benefits. Therefore, in cases involving premium arrearage
of 6 months or more, R-SMI will begin prospectively unless the enrollee elects to
pay all the premiums for SMI coverage beginning either with the earliest month of
R-HI entitlement or if later, the month of filing. Item 7 on the application Form
HCFA-43 should be examined for completion and if completed, equitable relief should
not be offered.
In cases containing a clear election of the individual's enrollment options, process
the case accordingly. In cases of 6 or more months of premium arrearage without the
individual's clear election, process as follows:
Begin the R-HI coverage from the earliest possible date (DI 45001.001C). Begin the R-SMI coverage with the current operating month (COM) in which the enrollment
is being processed. Complete the SSA-892-U3 as shown in DI 45001.025, and show “/yes” in Item 32. Prepare an SSA-101-U3 in non-CAPS cases, per DI 45001.030 and Form HCFA-8063 should be completed in accordance with DI 45001.045. An SSA-559 will be completed per DI 45001.030. If final processing is delayed, the R-SMI coverage date established in the letter
should not be changed.
The appropriate paragraph shown below should be included in the formal award notice.
Earnings Review Examiners will use Forms SSA-865 or SSA-573, as appropriate, to request
R-HI entitlement is the same or later than the month of filing:
You may, if you wish, have your medical insurance begin (MOE to HI) provided that within 30 days of this notice you submit a signed request for such
earlier coverage and pay $ , which is the premium due for your coverage from through .”
If you are receiving monthly social security benefits you can make that payment by
simply authorizing the Social Security Administration to withhold the amount due from
your monthly benefit.”
R-HI entitlement precedes the month of filing:
You may, if you wish, have your medical insurance begin with (1) your month of entitlement
to hospital insurance (date) , or (2) the month you filed your application (date) . If you want this earlier coverage, you should submit a signed request specifying
the month you want your coverage to begin. The request must be submitted within 30
days of the date of this notice.
Additionally, payment of the premium due must accompany your request. The premium
due would be $ if you select (date) or $ if you select (date) , provided your request is submitted within 30 days. If you are receiving monthly
social security benefits you can make that payment by simply authorizing the Social
Security Administration to withhold the amount due from your monthly benefit.”
NOTE: For fill-in of the amounts due in paragraphs a. and b. above, the computations must
be based on SMI monthly premium rates of $5.80 effective 7/73, $6.10 effective 8/73,
$6.30 effective 9/73, $6.70 effective 7/74, $7.20 effective 7/76, $7.70 effective
7/77, $8.20 effective 7/78, $8.70 effective 7/79, $9.60 effective 7/80, $11.00 effective
7/81, $12.20 effective 7/82, $14.60 effective 1/84, $15.50 effective 1/85, and $17.90
If an individual is included in a State Buy-In Agreement, modify the paragraphs shown
above to remove the references to payment of premiums for the appropriate period covered
by the Agreement.
However, if the State Buy-In Agreement is effective with the first possible month
of R-SMI entitlement and continues for all following months to COM, equitable relief
is not an issue as the State will pay the premiums.