631.03 Rate and Method of Recoupment (AAM)

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Recoup all overpayments of financial assistance as follows:

• Determine 10% of the assistance group’s standard of need.

• The result is the maximum monthly amount that can be recouped from the assistance group.

- Individuals may request more rapid repayment or make additional payments on their own.

- The percentage can be slightly less than 10% in order to equalize payments for the period.

 Exception: Overpayment to individuals in residential care facilities and community residences may be recouped at an amount less than 10% of the standard of need as recommended by the Bureaus of Elderly and Adult Services, Behavioral Health, or Developmental Services.

• * Ensure that the BV0019, Demand Letter for Overpayment, and Form 810, Notice of Rights and Responsibilities, were generated to notify the individual of the amount and circumstances of the overpayment.

• Request repayment in full or in part, or reduce the monthly grant. The amount of recoupment cannot reduce the monthly grant below $0.00.

• Request repayment of the outstanding overpayment when the case is closed prior to full recoupment. If the individual refuses to pay the full outstanding overpayment, suspend the recoupment until the individual becomes eligible for financial assistance again.

• If the maximum monthly recoupment amount determined above is less than the monthly grant amount, divide the maximum monthly recoupment amount by 2. This is the recoupment amount per financial assistance payment.

• Recalculate the rate of recoupment anytime the individual’s standard of need changes. Do not give an advance notice period.

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