Utah Admin. Code R986-700-731.1 - Collection of Overpayments

(1) A CC overpayment must be repaid to the Department pursuant to Section 35A-3-603.

(a) The Department reserves the right to pursue collection of any overpayment pursuant to Title 35A, Chapter 3, Part 6, Administrative Determination of Overpayment Act.

(b) For the purposes of this section "recoupment" or "recoup" means applying a CC payment or grant funds to an overpayment balance.

(c) For the purposes of this section "withholding" means delaying payment until a specified condition is met. Once the condition is met, the payment will be released.

(2) A client who is receiving CC and has an outstanding CC overpayment balance may be subject to recoupment of the overpayment from ongoing CC payment.

(3) If a provider does not repay an overpayment within 30 days of the order establishing that overpayment, the Department may take one of the following actions:

(a) for a provider receiving an ESG, recoup grant funds pursuant to Subsection R986-700-742(3), regardless of whether the provider agrees to recoupment;

(b) recoup a CC payment, if the provider voluntarily agrees to recoupment;

(c) establish a repayment plan with the provider;

(d) if the provider is not receiving an ESG and does not establish a repayment plan or voluntary recoupment, or fails to comply with a repayment plan, withhold any CC payment until the provider establishes a repayment plan or voluntary recoupment, the provider complies with the repayment plan, or the overpayment is paid in full; or

(e) file an abstract of the final administrative order and pursue a lien pursuant to Section 35A-3-606.

(4) Providers with adjudicated overpayments and who are not current on a repayment plan are ineligible to apply for grants administered through OCC.

(5) Overpayment assessed against a provider before May 8, 2020. For a provider that accrued any overpayment that has not been repaid before May 8, 2020, the following provisions apply.

(a) A provider shall repay an overpayment within 12 months of the order establishing that overpayment or enter into and comply with a repayment plan.

(b) A provider that does not repay an overpayment within 12 months of the order establishing the overpayment or comply with a repayment plan shall be subject to one of the following:

(i) for a provider receiving an ESG, involuntary recoupment of an ESG pursuant to Subsection R986-700-742(3), regardless of whether the provider agrees to recoupment;

(ii) voluntary recoupment of a CC payment, if the child care provider agrees to the voluntary recoupment;

(iii) the Department may withhold CC payment until the overpayment is paid in full; or

(c) the Department may file an abstract of the final administrative order and pursue a lien pursuant to Section 35A-3-606.

(6) A provider may not penalize any current CC client as a result of a Department collection action.

(i) "Penalize" includes:

(A) requiring a client to pay new or additional fees for service, excluding the copayment or amount exceeding the CC payment; or

(B) terminating services with the client.

(7) If the client or provider files a timely appeal, collection procedures will be stayed during the appeal process.

Notes

Utah Admin. Code R986-700-731.1

Adopted by Utah State Bulletin Number 2020-10, effective 5/9/2020 Amended by Utah State Bulletin Number 2024-21, effective 10/18/2024