An unfunded or bounced check is considered non-payment of a premium. Upon notice from State Treasury that a check has bounced, the household will be sent a notice of non-payment including the amount now due. If no payment is received within 30 days of the first notice, a second notice is sent. If no payment is received, the penalty will take effect the month following the month in which the second notice is sent, if the client has received 15 days advance notice.
Example
The family is sent a second notice of non-payment on May 10. No payment is received within fifteen days. The penalty starts June 1. If the notice was not sent until May 30, the penalty would take effect July 1.
The penalty is a period of time that the client cannot get coverage under the option for which there is a non-payment. The duration of the penalty period depends on the coverage option involved.
For Working Disabled, coverage cannot continue after the end of the current or last enrollment period unless the unpaid premiums are paid.
For the Special Benefit Waiver, coverage cannot continue after the end of the current period unless all outstanding premiums are paid.
For Katie Beckett, coverage cannot continue after the end of the current three-month premium period unless all outstanding premiums are paid.
Note: A family's three-month enrollment period cannot be ended to impose this penalty.
10-144 C.M.R. ch. 332, § 2-16