TN 17 (10-00)
HI 01005.803 Premium Collection for Insured Beneficiaries
Premiums are deducted from the benefit check one month in advance, e.g., premiums for October are deducted from the September benefit check. (See HI 01001.040C for situations where premiums owed will be deducted from any benefit payable.) There is no grace period applicable for current pay status or third party groups. Premiums are deducted every month through month of death or termination of entitlement. (There are no premium deductions for Premium HI.)
B. POLICY-Method of Premium Collection
1. SSA Enrollees in Current Pay Status and Disability Beneficiaries in Current Pay Status
Deduction from monthly benefit (on a current basis one month"s premium from each monthly benefit).
2. SSA Enrollee in Deferred Status-benefits to be resumed in current year
No billing initiated. Accrued premiums are deducted from the first monthly benefit when payments are resumed. (If in suspense and then deferred, billing will continue into deferred status.)
3. SSA enrolled in suspense status or deferred status into next calendar year
Quarter billing. The grace periods are the same as the uninsured beneficiaries and terminations will occur if payment is not received by the end of the 90-day grace period. The grace period ends on the last day of the third month after the initial billing month.
4. Third part group billing-a state or local government is paying the premium surcharge portion of the premium
Enrollee has the base premium either withheld from the benefit check or is billed directly for the base premium. A State or local government is billed monthly for the surcharge portion of the premium.