4-007.01B Criteria for Establishing Inadvertent Household Error (IHE) Overpayments

475 NAC 4-007.01B

An overpayment must be established against any household that received an overissuance due to an IHE within the last 12 months before the month of discovery. Action may be taken on an overpayment for which more than 12 months have elapsed; however, action cannot be taken on overpayments for which more than six years have elapsed between the month an overpayment occurred and the month the overpayment was discovered.

The following are the most common overpayment situations caused by inadvertent household errors:

1. Household misunderstanding or unintended error resulting in the household either reporting incorrect information or failing to report information or changes; or

2. Household receiving continued benefits pending a fair hearing and the agency's decision was upheld.

Procedures for Calculating Inadvertent Household Error Overpayment and Household Notification
The following procedures apply to households in the Change Reporting category.
1. Identify that an overissuance has occurred due to a failure to report:
2. Determine the first month of the overpayment;
Example: An IHE overpayment is processed when the Change Reporting household failed to report a new source of unearned income. The worker became aware of the failure to report on May 5. Using 10/10/10, the first month of the overpayment is July.
3. Record the Date of Discovery on N-FOCUS;
4. Recalculate the months of overpayment. Change only the information that caused the overpayment. Use the actual income received each month from the unreported source for calculating the claim. Do not change any other financial information.
5. If the overpayment involved unreported earned income, do not allow the earned income deduction when calculating the overpayment.
Example: If the household reports one source of earned income but fails to report a second source of earned income, the earned income disregard is not allowed on the unreported source of income.
6. After calculating the overpayment month(s), determine if the total overpayment is over the threshold for the household's current status.
The thresholds are - $25 for certified households and $125 for non-certified households.
7. An automated notice will be sent to the household to notify them of the amount of the recoupment and the month the recoupment will begin for certified households. Non-certified households will receive the automated notice and a monthly billing statement for cash payment.
8. Document all actions taken.

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