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TYPES OF OVERPAYMENTS

ISSUE DATE: 12/2014

There are 3 types of overpayments:

County agency error overpayments resulting from agency failure to take action on known or reported information. This includes miscalculation of a budget or failure to make a timely reduction in benefits based on information fully and timely reported by the client.

Client error overpayments. This includes any instance in which a client has not made a timely report. Consider cases suspected of fraud to be client error overpayments until a determination of fraud is made. Enter claims as non-fraud on MAXIS and adjust when appropriate.

Fraud overpayments. Consider cases suspected of fraud to be client error overpayments until the court or an Administrative Disqualification Hearing (ADH) makes a determination of fraud. Consider an overpayment in any month in which a client files a false report timely and this results in an overpayment to be a client error overpayment. This applies even if there is an agency error in the same month, unless the agency caused the client's failure to report. See 0025.24 (Fraudulently Obtaining Public Assistance).


Pursue recovery on all overpayments, EXCEPT for non-fraud overpayments on a closed case which total $35 or less. Initiate 1 MAXIS Notice of Overpayment, but do not pursue unless the unit reapplies.


Some examples of client error overpayment are:

The unit's failure to give the county agency correct or complete information.

The unit's failure to notify the county agency of required changes.

The unit's receipt of more benefits than it should have because of a request for an appeal hearing.

The unit's participation in more than 1 county or state in the same month.

NOTE: The continuous use of an EBT card in another state does not necessarily result in an overpayment unless there has been duplicate receipt of assistance. See TEMP Manual TE16.33 (Continuous Use of EBT Card In Another State).



Some examples of county agency error are:

The county agency's failure to take prompt action on a change the unit reported.

The county agency's miscalculation of the unit's income or deductions which results in an overpayment of benefits.


If the county which overpaid the unit does not pursue recovery, the county the unit moves into must pursue recovery. The county the unit moves into must contact the county which made the overpayment to verify that it does not intend to pursue recovery. The county agency which recovers the overpayment retains the county agency's share of the claim. For information on when to transfer a claim, see TEMP Manual TE02.09.18 (When to Transfer a MAXIS Claim).


MFIP:

Continue to code AFDC/FGA claims as AFDC/FGA claims (not MFIP claims). They will be recouped from MFIP.


DWP:

Follow general provisions. In addition, benefits are subject to overpayments and underpayments but are NOT subject to cross program recoupment. Any time an overpayment or underpayment is determined calculate the correction using prospective budgeting. See 0025 (Benefit Adjustments and Recovery). For participants receiving benefits via electronic benefit transfer (EBT), if the overpayment is a result of an ATM dispensing funds in error to the participant, the county may recover the ATM error by immediately withdrawing funds from the participantís EBT account, up to the amount of the error.


SNAP:

Client error overpayment is further defined as:

The unit's participation in the SNAP Program and the Food Distribution Program in the same month.

An error on the part of a categorically eligible unit.

Social Security Administration errors which result in a unit's categorical eligibility.



County agency error is further defined as:

The county agency's failure to reduce the unit's benefit when it's cash assistance changed.

The county agency issuing the unit SNAP benefits after their certification period expired.

The county agency overpaying SNAP due to the underpayment of a cash assistance grant that would have reduced SNAP benefits.



MSA:

Determine and recover overpayments from special needs.


GA, GRH:

Follow general provisions.

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