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 section 792-4 below.
If there is an underpayment in the same case, the underpayment amount is adjusted against the overpayment before recoupment is begun or the corrective payment ordered. Complete one Claim Determination form ( GEN 95 ) showing both the overpayment and underpayment and submit the form to the Claims Specialist.
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 an uncle, who applies for Temporary Assistance. 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.
Refer to Administrative procedures Manual section 111 for complete procedures on claims and collections. When an overpayment is discovered, the following actions must be taken:
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.
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 Claim Determination form ( GEN 95 ) for cases that are referred to the Fraud Unit.
If no fraud is involved, the Claims Specialist sends a recoupment notice to the client, giving him 30 days to repay the loss or to have his Temporary Assistance grant reduced for the months necessary to recover the loss. If the client wishes to protest the recoupment determination, he may request a hearing.
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.
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.
792-3 C. ALIEN SPONSOR RECOUPMENT
Aliens and sponsors are jointly and separately liable for overpayments caused when the sponsor fails to provide correct information. If the sponsor is "without fault" or has "good cause", then the alien alone is liable.
"Without fault" means that DPA has failed to inform the sponsor of his reporting responsibilities, what must be reported, and the penalties for not reporting or for reporting incompletely or incorrectly; or that facts exist which make it reasonable to presume that the overpayment was caused primarily or entirely by the alien willfully misreporting or willfully failing to report, and that the sponsor was unaware of this act.
”Good cause” means that circumstances beyond the sponsor's control occasioned the overpayment by preventing the sponsor from reporting himself or from exercising his responsibility to see that the alien timely provided full and correct information. Such circumstances include, but are not limited to, temporary severe illness or incapacity of the sponsor or his immediate family, an unavoidable temporary absence, or remoteness in combination with severe weather.
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