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
Prepare a SSA-5002-HB, Report of Contact overprint form or the Modernized Development
Worksheet (MDW) and send it to the appropriate program service center (see HI 01005.802).
If sending the SSA 5002-HB overprint form, mark the envelope "Monthly Billing no premium
involved" if the request is sent in without an enrollee's premium.
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.