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 says he/she is unable to pay
the arrearage in a lump sum, accept his/her 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).
NOTE: The installment payments must, in large arrearage cases, be sufficient to liquidate
the arrearage in 42 months.
Notify the PSC or ODO of the tentative arrangements the individual agrees to for the