The premium arrears will be considered paid timely if benefit payments can be resumed
in the first month of the extended grace period or for earlier months on the basis
of a notice filed by the beneficiary before the initial grace period ends and all
overdue premiums can be collected from such payments.
If a benefit payment sufficient to cover the premium arrearage can be made for any
of the next 2 months, the reviewing office will notify the individual in accordance
with HI 01001.370B.3. that coverage may be reinstated if submits timely (before the end of the extended
grace period or, if later, within one month after the date of the reviewing office
notice) a statement showing good cause for failure to pay the overdue premiums within
the regular grace period.
A working beneficiary notified us in 4/73, the last month of initial grace period,
that would not be working that month. The amount of the benefit for that month was
$178 and owed premiums for all months after 6/72. Since the $34.80 owed for premiums
for 1972 could be collected by deduction from April benefit, SMI coverage continues.
NOTE: $63.80 was deducted from 4/73 benefit check to pay premiums for the months 7/72
- 5/73 inclusive.
If beneficiary waited until 5/73 to notify us of no work in 4/73 and had not otherwise
paid the overdue premiums by 4/30/73, the reviewing office should notify that continuance
of their coverage will depend upon a showing of good cause for failure to report work
cessation or otherwise pay premiums before 5/74. Failure to show good cause by 7/31/74
(or within 30 days after the date of the reviewing office letter) will require termination
of SMI effective 4/30/74.