Recoupment of Foster Care Overpayments 623-05-20-20

(Revised 4/25/16 ML #3469)

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PI 20-08

 

 

CCWIPS has the ability to recoup overpayments from foster care providers for amounts due the Department. The payment system has the ability to automatically subtract any debits (such as the overpayment) to that provider for any foster child.

 

The procedure for overpayment recoupment is as follows:

  1. Overpayments made to foster care providers are recouped in CCWIPS the month following the month the overpayment is set up in the payment system, assuming that any foster child is residing in the home and/or a payment is being made to that provider. This direct recoupment is a central office, CFS, function only.
    1. CCWIPS can only recoup from the standard check write. For providers where a placement continues and an overpayment has occurred, CFS will set up the auto-recoupment specific to that provider. Payment authorization must be made after the last supplemental check write and before the standard check write in order for the auto-recoupment to process that month.
  1. If no payment is due to the foster care provider in the month following the month the overpayment is set up, the county collects the overpayment from the foster care provider and sends the overpayment remittance to NDDHS Fiscal Administration with a completed credit form (SFN 827).
  2. NDDHS Fiscal Administration will age unresolved balances and at the three month point will bill the financially responsible county dollar for dollar. Indian county cases in need of overpayment reimbursement will be reviewed and handled on a case-by-case basis.

Collections:

If recoupment from a foster care provider cannot be accomplished, NDDHS will work to collect the overpayment through a collection agency. If the agency does collect the overpayment from the provider, the money will be paid to NDDHS and the CCWIPS payment record will be adjusted accordingly. If the collection agency holds the account for six years and does not have success in collecting the overpayment, state law requires the collection agency to return the account to NDDHS.

 

NDDHS can make the determination to close the CCWIPS foster care overpayment if the account was returned to NDDHS from a collection agency after six years and the overpayment amount does not exceed a value approved by Fiscal Administration.