[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: 42CFR408.84]



[Page 284]

 

                         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 E_Direct Remittance: Group Payment

 

Sec. 408.84  Billing and payment procedures.



    (a) Initial premium notice. (1) CMS or its agent always sends the 

initial premium notice to the enrollee.

    (2) An enrollee who wishes to have the premiums paid on a group 

basis must give the notice to the group payer, along with written 

authorization for sending subsequent notices to the group payer and for 

release of the information required for the group payment process.

    (b) Monthly billings. Group premiums are billed on a monthly basis. 

However, the group payer may pay up to 12 months in advance.

    (c) Group payers must make their payments within 30 days after 

billing, to avoid infringing on the 90-day grace period during which the 

premiums may be paid by the enrollee if he or she is dropped from the 

group.

    (d) Effect of group payment. Payment by a group payer is considered 

payment by the enrollee.