TN 22 (11-01)
HI 01001.085 Initial Billing Procedures
The initial bill for an enrollee billed on a quarterly basis will cover premiums for
months beginning with the first month of coverage and continuing through the third
month following the month of billing; subsequent billings will be for 3 months. If
several months of coverage elapse before the person is billed, it will increase the
amount of premiums in a relatively short period, thus increasing the danger of nonpayment,
termination of Supplementary Medical Insurance (SMI) coverage, and loss to the trust
fund. Thus, to permit early establishment of SMI rights and prompt billing, develop
and adjudicate enrollment applications as promptly as possible.
Example: If the enrollee's coverage began in 8/99, and the billing notice was sent in 9/99,
the initial billing covered premiums for August and September plus the ensuing 3 months
(10/99-12/99). Thus, the enrollee was asked to pay 5 months' premiums on the initial
notice. Thereafter, the enrollee will be billed quarterly for 3 months' premiums