TN 22 (11-01)

Section 228 of the Social Security Act provides special monthly payments to people who are 72 years old or older and meet certain other requirements, even though they are not fully insured.

Many individuals entitled to, or eligible for, such payments are not receiving payment and may never receive them because of entitlement to, or eligibility for, a government pension or because of receipt of certain public assistance payments. Entitlement to a special age 72 payment does not qualify an enrollee for the insured grace period applicable to beneficiaries entitled to other benefits.

Premiums due or overdue will be deducted from any special age 72 payment in accordance with the policies in HI 01001.040. If an enrollee's age 72 payment is not payable, or if his/her claim for the special age 72 payment is pending but unadjudicated, the due date and grace period will be determined under the same rules that apply to the direct billed beneficiaries. The enrollee's premium payment for a month or quarter is due by the 25th of the month of billing.

In some cases, premiums which are being deducted from the age 72 payment can no longer be collected by deduction because the benefit is suspended. These enrollees will be notified to pay their premiums by direct remittances and that payment is due by the 25th of the month of billing. The grace period extends through the end of the third month after the month the bill is received. If the special age 72 payment is resumed for a month before the end of the grace period and all premium arrears can be deducted from such payments, Supplementary Medical Insurance coverage will continue. Subsequent payments will be reduced by the amount of the premium for as long as the enrollee receives these payments.