---
kind: "section"
citation: "42 C.F.R. § 408.4"
title: "42"
number: "408.4"
heading: "Payment obligations."
url: "https://uscodex.org/cfr/42/408.4"
---

# §408.4. Payment obligations.

- (a) **Month for which payment is due.**
  - (1) A payment is due for each month, beginning with the first month of SMI coverage and continuing through the month of death or, if earlier, the month in which coverage terminates.
  - (2) A premium is due for the month of death, if SMI coverage is still in effect, even though the individual dies on the first day of the month.
- (b) **Overdue premiums.**
  - (1) **Overdue premiums constitute an obligation enforceable against the enrollee or the enrollee's estate.**
  - (2) **Overdue premiums are collected—**
    - (i) By deduction from social security or railroad retirement benefits or Federal civil service annuities;
    - (ii) Directly from the enrollee or the enrollee's estate; or
    - (iii) **By offset against any SMI payments payable to the enrollee or the enrollee's estate.**
  - (3) Interest is not charged on overdue premiums, except under a State buy-in agreement, as provided in [§ 408.6(c)(4)](/cfr/42/408.6.md?p=c-4).
- (c) **Premiums not required for certain kidney donors.**
  - (1) No premiums are required for SMI benefits related to the donation of a kidney if the donor is not an enrollee.
  - (2) **A kidney donor who is an enrollee is not relieved of the obligation for premiums.**

## Notes

### Amendments

[52 FR 48115, Dec. 18, 1987; 53 FR 4159, Feb. 12, 1988]

### Authority

Authority: 42 U.S.C. 1302 and 1395hh.

### Source

Source: 52 FR 48115, Dec. 18, 1987, unless otherwise noted.

### Amendments

[52 FR 48115, Dec. 18, 1987; 53 FR 4159, Feb. 12, 1988]