[Code of Federal Regulations]

[Title 42, Volume 2]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR408.40]



[Page 280]

 

                         TITLE 42--PUBLIC HEALTH

 

                    CHAPTER IV--CENTERS FOR MEDICARE

                          & MEDICAID SERVICES,

                        DEPARTMENT OF HEALTH AND

                             HUMAN SERVICES

 

PART 408_PREMIUMS FOR SUPPLEMENTARY MEDICAL INSURANCE--Table of Contents

 

                Subpart C_Deduction From Monthly Benefits

 

Sec. 408.40  Deduction from monthly benefits: Basic rules.





    (a) Deduction from monthly benefits. (1) Enrollees who are receiving 

monthly benefits do not have the option of paying by direct remittance 

to avoid deduction.

    (2) If the enrollee is entitled to more than one type of monthly 

benefit, the order of priority for deduction is as follows:

    (i) Railroad retirement benefits.

    (ii) Social security benefits.

    (iii) Civil service annuities.

    (b) Deduction from initial or reinstated benefits. When an enrollee 

receives a monthly benefit check after an initial award or after a 

period of suspension, that check is, if administratively feasible, 

reduced or increased to deduct unpaid premiums or refund premiums paid 

in advance by direct remittance.

    (c) Ongoing deductions. The premium for each month is deducted from 

the cash benefit for the preceding month, e.g., the premium for March is 

deducted from the benefit for February, which is paid at the beginning 

of March.