3-007.03B2 Recoupment of Overpayments

469 NAC 3-007.03B2

If a state supplement payment is made for an amount greater than the amount the client was entitled to receive as the result of a client error, the overpayment is recouped by reducing current state supplement payments by at least ten percent.

The worker must first send a demand letter, giving the client the choice of reimbursing all or part of the overpayment or having future assistance reduced. If the client reimburses part of the overpayment, the remainder must be recouped by grant reduction. The worker must allow the client ten days to respond to the demand letter. If the client requests recoupment within the ten days, the worker must take necessary action at that time. If the client does not respond within ten days, the worker must begin recoupment procedures in the first month possible, taking into account adequate and timely notice.

Recoupment is limited to the amount of overpayment which occurred in the 12 months preceding the month in which the overpayment was discovered. If the overpayment occurred before the 12-month time limit, no action may be taken.

In cases of suspected fraud, the social service worker must refer the case to the Special Investigation Unit, Central Office, or in the Omaha Office, to the Omaha Special Investigation Unit. Once a case has been referred to the Special Investigation Unit, the worker must take no action with regard to the prosecution of the suspected fraud except in accordance with instructions or approval by the Special Investigation Unit. However, the worker should complete normal case actions. Normal case actions include closing a case that is found to be ineligible and recovering overpayments.