792-3          OVERPAYMENTS

When a family receives a benefit that is larger than that for which they are eligible, an overpayment has occurred. The Division must recoup the overpayment, except as noted in ATAPAlaska Temporary Assistance Program MS 792-4 below.

Note:

When a full month of ATAPAlaska Temporary Assistance Program benefits have been overpaid, the caseworker that determined the household was ineligible for assistance is required to establish the overpayment is EISEligibility Information System and send a GEN 95Report of Claim Determination to the Claims Unit.

The Claims Unit will create the overpayment claim and request an update to the TLIPTime Limit Information / Previous Aid counter via an email submission to hss.dpa.systems.support@alaska.gov, with the subject line of "ATAP Time Limit Change Request."

If there is an underpayment in the same case, the underpayment amount is adjusted against the overpayment before recoupment is initiated or the corrective payment authorized. Complete one "Claim Determination" form (GEN 95Report of Claim Determination) showing both the overpayment and underpayment and submit the form to the Claims Unit.

Additionally, an overpayment "follows" each member of the overpaid unit if that client's case is closed.

Example:

A child is a member of an assistance unit with his mother. His mother leaves the state, giving him to his uncle, who applies for ATAPAlaska Temporary Assistance Program. The amount of the outstanding overpayment is recouped from the uncle/nephew's new grant.

Alaska does not recoup for other states and other states do not recoup for Alaska.

792-3 A.      RECOUPMENT PROCESS

Refer to Administrative Procedures Manual MS 111 for complete procedures on claims and collections. When an overpayment is discovered, the following actions must be taken:

1. The cause must be determined. If the case is open, the current budget must be corrected if necessary. If the case is closed, the case history must show an overpayment for collection if it reopens in the future.
2. The total amount of the overpayment must be determined. If fraud is suspected, the case is referred to the Fraud Unit and no further action taken except to correct the current grant, if necessary. Do not complete or submit a GEN 95Report of Claim Determination for cases that are referred to the Fraud Unit.
3. If no fraud is involved, the Claims Specialist sends a recoupment notice to the client, giving them 30 days to repay the loss or to have his ATAPAlaska Temporary Assistance Program grant reduced for the months necessary to recover the loss. If the client wishes to protest the recoupment determination, he may request a hearing.
4. If the client repays part or all of the loss, the Claims Specialist sends a receipt. The balance of the loss must be recovered by grant withholding.
5. The Claims Specialist takes action to reduce the grant by 10% of the maximum amount payable to an assistance unit of the same size with no countable income and a timely notice is sent to the client. This recoupment continues until the loss is repaid.

792-3 B.      RECOUPMENT SUSPENSION

The 10% recoupment withholding may be suspended for up to 3 months. With supervisory approval, the Claims Specialist can suspend only if recoupment poses such a financial threat that the loss of income threatens the continued existence of the family as a unit.