TN 22 (11-01)
HI 01001.075 Information Regarding Monthly Payments
Monthly premium billing should not be encouraged where it is not warranted. However, if the enrollee asks about it or the field office (FO) has reason to believe that the enrollee would have difficulty paying the quarterly premium in a single payment, the FO should very carefully explain the monthly arrangement to the enrollee. Any enrollee who makes it clear that he/she prefers to pay premiums monthly or would have difficulty in making a quarterly payment, may be placed on a monthly basis.
It costs both the Government and the enrollee considerably more to collect premiums monthly. (The cost to the enrollee is in postage and in paying for checks or money orders.) When changing from quarterly billing to monthly billing, the enrollee should understand that he/she is still obligated to pay all outstanding premiums.
By making one quarterly payment promptly, the enrollee can feel secure knowing that he/she met all his/her responsibilities for the quarter.
See HI 01001.070 to arrange for monthly billing when coverage begins.
When the request for monthly billing is from an enrollee who has already made premium payments:
If a premium payment is sent with the SSA-5002-HB, mark the envelope "Monthly billing-premium enclosed" and send to the Medicare Premium Collection Center. Inform the enrollee that he/she should pay as soon as he/she is billed. There is limited time available to protect the enrollee if he/she is late with one payment.