The premium arrears will be considered paid timely if benefit payments can be resumed
in the first month of the extended grace period or for earlier months on the basis
of a notice filed by the beneficiary before the initial grace period ends and all
overdue premiums can be collected from such payments.
If a benefit payment sufficient to cover the premium arrearage can be made for any
of the next 2 months, the reviewing office will notify the individual in accordance
with HI 01001.370 B.3. that his coverage may be reinstated if he submits timely (before the end of the
extended grace period or, if later, within one month after the date of the reviewing
office notice) a statement showing good cause for his failure to pay the overdue premiums
within the regular grace period.
A working beneficiary notified us in 4/73, the last month of his initial grace period,
that he would not be working that month. The amount of the benefit for that month
was $178 and he owed premiums for all months after 6/ 72. Since the $34.80 he owed
for premiums for 1972 could be collected by deduction from his April benefit, his
SMI coverage continues. (Note: $63.80 was deducted from his 4/73 benefit check to
pay premiums for the months 7/ 72-5/73 inclusive.)
If he waited until 5/73 to notify us that he had done no work in 4/73 and had not
otherwise paid the overdue premiums by 4/30/73, the reviewing office shouldnotify
him that continuance of his SMI coverage will depend upon a showing of good cause
for his failure to report work cessation or otherwise pay premiums before 5/74. Failure
to show good cause by 7/31/74 (or within 30 days after the date of the reviewing office
letter) will require termination of his SMI effective 4/30/74.