TN 49 (11-22)

HI 01001.075 Information Regarding Monthly Payments


A. Monthly Premium Billing

Monthly premium billing should not be encouraged where it is not warranted. However, if the beneficiary asks about it or the field office (FO) has reason to believe that the beneficiary would have difficulty paying the quarterly premium in a single payment, the FO should very carefully explain the monthly arrangement to the beneficiary. Any beneficiary who makes it clear that they prefer 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 beneficiary considerably more to collect premiums monthly. (The cost to the beneficiary is in postage and in paying for checks or money orders.) When changing from quarterly billing to monthly billing, the beneficiary should understand that they are still obligated to pay all outstanding premiums.

By making one quarterly payment promptly, the beneficiary can feel secure knowing that they have met all of their responsibilities for the quarter.

See HI 01001.070 to arrange for monthly billing when coverage begins.

B. Procedure-when a beneficiary has already made premium payments

When the request for monthly billing is from a beneficiary who has already made premium payments:

  • Prepare a Modernized Development Worksheet (MDW) and send it to the appropriate program service center (see HI 01005.802).

  • Note"Monthly Billing"

Inform the beneficiary that they should pay as soon as they are billed. There is limited time available to protect the beneficiary if they are late with one payment.

C. Procedure-premium payment in the Field Office


Payment of premiums in the FO should be discouraged for the reasons given in HI 01001.025.

However, if a beneficiary insists on paying their premiums in the FO, follow instructions in HI 01001.090 Receipt of Premiums in the Field Office (FO).

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HI 01001.075 - Information Regarding Monthly Payments - 11/23/2022
Batch run: 11/23/2022