Although SMI is awarded to Mr. Jones (who is not a social security beneficiary) and
utilizes SMI coverage beginning 7/1/90, many months elapse without a premium notice.
When the error is discovered in 4/92, a billing notice is sent to Mr. Jones along
with the notice described in HI 00805.220B.. Mr Jones pays the current premium bill and requests waiver of the premium arrearage.
If Mr. Jones establishes that paying the arrearage would deprive of funds for ordinary
living expenses (see HI 00805.220H.), the arrearage is waived.
If Mr Jones does not qualify for waiver, Mr Jones may nevertheless be afforded the
opportunity to pay the premium arrearage in installments of $20 a month.
(Mr Jones cannot be offered the opportunity to have SMI cancelled for the period involved
because of used coverage.)