HI 01001.210 Deletions of State Buy-In Coverage
States may delete buy-in coverage for individuals who are no longer members of a specific
coverage group, or have changed their residence to another State, etc. State deletions
cannot be earlier than the second month before the month in which the State notified
SSA of the deletion. For example, if a State reports in December a deletion effective
September, the deletion date will be advanced during processing to October and the
individual's first month of liability for premiums will be November. If the report
had indicated October, November, or December as the effective month of deletion, the
actual month reported would have been accepted.
An exception to the “2-month tolerance” rule is in the area of retroactive, simultaneous accretions/deletions (see HI 01001.215).
When SSA has the accretion/deletion responsibility due to the receipt of SSI payments,
a State buy-in will be deleted by means of internal processing when an SSI nonpayment
event is communicated to the MBR. If the State has the accretion/deletion responsibility
and SSI eligibility ceases, the State is notified that the individual is no longer
entitled to SSI and the buy-in remains in effect indefinitely or until such time as
the State submits a deletion.
A special premium increase (penalty rate) applicable to individuals who delayed their
enrollment will always be negated by a State buy-in because the buy-in is considered
to be a timely initial enrollment. Therefore, when a State buy-in is deleted, the
current base premium rate will always be applicable. The base rate will remain in
effect indefinitely or until such time as the individual terminates the period of
coverage and subsequently reenrolls. The subsequent period of coverage will again
be subject to a special increase (if the State does not buy-in again) computed from
the month after the month of the termination through the end of the general enrollment
period in which the individual next enrolls or April 1-September 30, 1981, through
the end of the month in which the individual next enrolled.