Monthly premium billing should not be encouraged where it is not warranted. However,
if the beneficiary asks about it or the field office (FO) has reason to believe that
the beneficiary would have difficulty paying the quarterly premium in a single payment,
the FO should very carefully explain the monthly arrangement to the beneficiary. Any
beneficiary who makes it clear that they prefer to pay premiums monthly or would have
difficulty in making a quarterly payment, may be placed on a monthly basis.
It costs both the Government and the beneficiary considerably more to collect premiums
monthly. (The cost to the beneficiary is in postage and in paying for checks or money
orders.) When changing from quarterly billing to monthly billing, the beneficiary
should understand that they are still obligated to pay all outstanding premiums.
By making one quarterly payment promptly, the beneficiary can feel secure knowing
that they have met all of their responsibilities for the quarter.
See HI 01001.070 to arrange for monthly billing when coverage begins.