When the direct billing record does not reflect payment of premiums by the end of
the grace period, the record will reflect a termination of enrollment for nonpayment
of premiums. This prevents possible dissemination of erroneous coverage information
and thus minimizes Part B overpayments. If a payment is received during the due process
period, the Medicare termination date will be removed.
A notice of termination of enrollment for nonpayment of premiums will generally be
mailed to the enrollee about 30 days after the end of the grace period. This 30-day
period provides time for processing any premium payments received late in the grace
period, and avoids incorrect notices that could cause the enrollee needless anxiety.
The date shown on the notice is the first day of the second month following the last
month of coverage or, in the case of a delayed notice, if it is mailed after the fifteenth
of a month, the first day of the next month.