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