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Minnesota Department of Human Services Child Care Assistance Program (CCAP) Policy Manual
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14.3 Responsibility for Overpayment

ISSUE DATE: 12/2015

STEP ONE: DECIDE WHO BENEFITED FROM THE OVERPAYMENT

How is this decided?

Family Overpayments

If CCAP paid for more care than the family was eligible to receive, the family benefited. Assign the overpayment to the family except in the situations identified below as provider overpayments.

Examples of when overpayments may be assigned to the family include when:

A parent commits an Intentional Program Violation (IPV) and has been disqualified for fraud. See Chapter 14.12.3 (Disqualification for Fraud – Families).

More hours of care were authorized and paid by CCAP than what the family was eligible for. See Chapter 9.1 (Child Care Authorization) and Chapter 9.9 (Determination of Payment Amounts).

Changes in income or activity were not reported and the amount paid by CCAP should have been less. See Chapter 8.3 (Reporting Requirements).

Provider Overpayments

When the family did not benefit from an overpayment, but the provider received more child care assistance than was correct, assign the overpayment to the provider.

Examples of when overpayments may be assigned to the provider include when:

A provider commits an Intentional Program Violation (IPV) and has been disqualified for fraud. See Chapter 14.12.6 (Disqualification for Fraud – Providers).

The rates paid by CCAP are higher than what CCAP policy allows. See Chapter 9.24 (Provider Rates).

A provider does not indicate an absent day for a day when a child did not attend at all. See Chapter 9.39 (Care During Child Absences).

A provider fails to comply with attendance record keeping requirements. See Chapter 11.15 (Provider Record Keeping).

A legal nonlicensed provider cares for children from more than one unrelated family at the same time. See Chapter 11.9 (Legal Non-Licensed (LNL) Providers).

A provider that is not exempt from licensing bills for care during a time when they are not licensed. See Chapter 11.3 (Licensed Child Care Providers), Chapter 11.6 (License Exempt Centers), and Chapter 11.9 (Legal Non-Licensed (LNL) Providers).

Family and Provider Overpayments

If both the family and the provider benefited, assign an overpayment to both parties.

Overpayments can be assigned to the family and provider only when both the family and the provider acted together to intentionally cause the overpayment. This means that both parties committed an Intentional Program Violation (IPV) and have been disqualified for fraud. See Chapter 14.12 (Fraudulently Obtaining Child Care Assistance), Chapter 14.12.3 (Disqualification for Fraud – Families), and Chapter 14.12.6 (Disqualification for Fraud – Providers). Both parties are jointly liable for the overpayment, regardless of who benefited from it. Recover the overpayment as outlined in Chapter 14.9 (Recovery Methods).

After the family or provider has completed their fraud disqualification period, as long as either party is in compliance with a repayment agreement, the party in compliance is eligible to receive child care assistance or to care for children receiving child care assistance, even if the other party is noncompliant with repayment arrangements. Once a family or provider becomes eligible again, the recovery method for that party switches from repayment to recoupment.

STEP TWO: RECOUP OR RECOVER FROM THE PARTY WHO BENEFITED

See Chapter 14.9.6 (Recoupment – Families), and Chapter 14.9.9 (Recoupment – Providers) arrangements.


LEGAL AUTHORITY

Minnesota Statutes 119B.011, Subd. 21
Minnesota Statutes 119B.11, Subd. 2a and Subd. 3
Minnesota Statues 119B.125, Subd. 6 and 7
Minnesota Rules 3400.0140, Subp.19
Minnesota Rules 3400.0187

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© 2017 Minnesota Department of Human Services Updated: 12/23/15 2:41 PM | Accessibility | Terms/Policy | Contact DHS | Top of Page | Updated: 12/23/15 2:41 PM