Many people would have difficulty in paying a large premium arrearage, and might either
refuse SMI or lose their SMI due to the inability to pay their premiums on time.
When talking with the claimant or his/her responsible representative and there appears
to be 6 or more months of premium arrearage, tell him/her that SMI coverage is prospective
only (i.e., coverage begins with the month in which the enrollment is processed).
If the claimant is willing and able to pay all premiums for coverage beginning with
the earliest possible (specified) month, or prefers to have SMI begin with the month
of filing, he/she may choose to have coverage begin with either of those months.
Unless there is a statement in file showing that the claimant wants to have SMI retroactive
to the specified month or the month of filing, SMI should be awarded prospectively,
and the claimant notified of his/her right to have earlier coverage. The SMI award
can be amended to give retroactive coverage if a timely request and payment are received.