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(1) negotiate a repayment schedule in good faith; or

(2) comply with a negotiated repayment schedule. (d) In a notice of noncompliance issued under (c) of this section, the department will include a demand for payment in full of the recovery amount within 30 days after the date of receipt of the notice. An individual who does not pay the full amount within 30 days is in default. An individual in default is ineligible for Medicaid until the department determines that the individual is no longer in default. The department will pursue available legal remedies to recover the amount due from the income and resources of the individual in default. (e) If the department determines that an individual or a member of the individual’s household will suffer severe economic hardship if the individual is required to repay the amount required in (b) of this section, the department will do one or more of the following:

(1) allow the individual to repay less than the total amount;

(2) reduce the monthly payment amount by lengthening the negotiated repayment schedule;

(3) temporarily suspend repayment. (f) An individual who wishes to dispute any action taken by the department under (a) — (e) of this section or the amount of Medicaid expenditures claimed for recovery under this section may request a hearing under 7 AAC 49. (g) For purposes of (e) of this section, a severe economic hardship is one that would require the individual or the individual’s household to forgo basic food or shelter in order to make the payment required under (e) of this section. (Eff. 7/20/2007, Register 183) Statutory Authority: Authority: AS 47.05.010 AS 47.05.240

AS 47.05.210 AS 47.07.040 7 AAC 100.912. Intentional program violations, program abuse, and criminal offenses. (a) If the department has reason to believe that an individual has committed an intentional program violation or program abuse, the department will conduct a full investigation in