Haw. Code R. § 17-794.1-58 - Overpayment and recoupment

(a) An overpayment occurs when a recipient receives payments to which the person is not entitled.

(b) An overpayment made to a family or a provider currently receiving cash assistance for child care and supportive services shall be recovered through:

(1) Repayment in cash, in full or in part, by the family or provider responsible for the overpayment to the department;

(2) A mutually acceptable repayment schedule; or

(3) A reduction in the amount payable to the family or provider in a subsequent month.

(c) Individuals subject to recovery of overpayment shall be provided written notice by the department stating:

(1) The reasons, dates, and the amount of the alleged overpayment;

(2) The method by which the proposed overpayment shall be recovered; and

(3) The individual's right to request a fair hearing if the individual disagrees with the department's proposed action.

(d) When a family has both an overpayment and an underpayment, the overpayment and underpayment shall be offset one against the other in correcting the payment.

(e) Overpayment to:

(1) Individuals may be recovered from the family which was overpaid, from individuals who were members of the family when overpaid, or from families which include members of a previously overpaid family; and

(2) Providers shall be recovered through reduction in subsequent child care payments until the entire child care overpayment is recovered.

(f) When an overpayment is recovered from the family through a reduction in a subsequent child care payment, the amount recovered shall not exceed ten per cent of the department's payment.

(g) The department shall recoup overpayments as follows:

(1) Child care overpayments may be recovered only from child care benefits, provided the client continues to be a FTW participant and receives child care benefits;

(2) Supportive services overpayments may be recovered only from supportive services benefits, provided the client continues to be a FTW participant and receives supportive services benefits;

(3) Recoveries of child care and supportive services overpayment may be made from AFDC benefit payments, provided the recipient family voluntarily requests this method of repayment; and

(4) Recovery of overpayments to former recipients shall be referred to the department's collections and recovery office.

(h) The department shall send monthly bills requesting payment until the entire overpayment amount is liquidated.

(i) If a family or child care provider, for whom a collection action has been initiated, fails to make a payment for any month in the calendar tax year, the department may refer debts exceeding $25 to the comptroller of the State for a tax setoff as specified in chapter 17-606.

(j) If fraud is suspected in an overpayment situation, the department shall pursue the investigation of suspected fraud as specified in chapter 17-604.

Notes

Haw. Code R. § 17-794.1-58

[Eff 6/11/07; comp JAN 16 2012] (Auth: HRS §§ 346-14, 346-34, and 346-44) (Imp: 45 C.F.R. §255.4 )