When an individual owes premiums from a prior period of coverage and pays premiums
at or after the time he/she reenrolls, such premiums will be credited to whichever
period he/she specifies. Where he/she fails to specify how the premiums should be
applied, they are credited to the new period of coverage. Any implied indication to
the contrary should be respected. For example, if an uninsured beneficiary returns
any type of notice of premium due from the past period of coverage (billing notice,
letter, or termination notice) along with a remittance, this can be interpreted as
expressing intent to settle his/her existing premium indebtedness. The premiums should
be credited accordingly.