TN 22 (11-01)

HI 01001.080 Enrollee Changes from Quarterly to Monthly Pay Plan after Coverage Begins

When an enrollee under the quarterly billing cycle has arranged to pay premiums monthly, the first monthly bill (if there are no premiums in arrears under the quarterly cycle) will be for one month's premium, which is due upon receipt. However, an enrollee who is in arrears with his/her quarterly billing when the request for monthly billing is approved will be billed for all premiums due. The grace period will begin with the first day of the earliest month for which he/she has failed to pay.

 

Example: In 12/99, Mr. Anderson was billed for premiums for January, February, and March 2000. Mr. Anderson failed to pay any of the premiums, and during the first week of 2/00 he received a second notice informing him of his premium arrearage. In 2/00, he contacted the local field office and requested monthly billing. This change was made to his billing cycle. In early March, Mr. Anderson was billed for premiums for January, February, March, and April. He was advised that all these premiums were due and should be paid promptly, or his coverage would terminate effective with the due date of the bill.