If the type of relief offered in a particular case requires payment of a premium arrearage to have earlier (or continuous) entitlement, the PSC or ODO notice tells the individual that the social security office will advise the individual of arrangements that may be made if the individual is unable to pay the arrearage in a lump sum. The notice does not mention installment payments, per se.

If an individual inquires about the “arrangements” mentioned in the PSC or ODO notice, mention installment payments. Make it clear that installment payments are intended for those persons whose SMI coverage for a retroactive period requires payment of an arrearage, but whose financial circumstances make it difficult to pay the premium arrearage in a lump sum.

If, after receiving such information, the individual is unable to pay the arrearage in a lump sum, accept the individual’s statement without further development.

Tell the individual that the arrearage may be paid in monthly installments of at least $15 (over and above the current premium).

If an individual defaults on installment payments, notify the individual that the individual has 30 days to remit the missing installments or the period of SMI entitlement covered by the installment agreement will be deleted.