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Chapter 6 - Overpayment and Underpayment
INTRODUCTION 6.1
This chapter provides information on TANF and FS overpayment policy and underpayment policy in TANF, FS, GC, and IDA programs. An overpayment occurs when a recipient receives benefits for which s/he is ineligible to receive. Similarly, an underpayment occurs when a recipient receives fewer benefits than s/he is eligible to receive.
In this chapter only the term "All" refers to the Food Stamp Program and all Cash Assistance programs. The term “Both" refers to TANF and Food Stamps only.
The overpayment section outlines when to charge a TANF or FS overpayment and pursue overpayment recovery. In cases in which an overpayment has been charged and the group continues to receive TANF or FS, a portion of the group’s benefits are withheld to repay the overpayment. In cases in which the group no longer receives benefits, the Office of Chief Financial Officer, Payment and Collections Division, is responsible for pursuing overpayment recovery. Overpayments are not charged in the GC or the IDA programs.
The underpayment section outlines when to provide supplemental benefits to adjust for an underpayment in TANF, FS, GC, or IDA.
This chapter does not apply to MA. However, the Department of Health (DOH) may seek to collect funds expended on behalf of individuals ineligible for health benefits or medical expenses paid to providers not eligible for Medicaid reimbursement.
LEGAL AUTHORITY 6.2 AREA/TOPIC DISTRICT FEDERAL Overpayments TANF: D.C. Code 4-210.19; 3-218.1; 29 DCMR 5816 FS: 7 USC(2022); 7 CFR
273.18 Underpayment TANF: D.C. Code 4-208.3; 29 DCMR 5817 GC: See TANF and D.C. Code 4-205.5a FS: 7 USC 2020(b); 7 USC
2020(e)(10)-(11); 7 CFR 273.18 OVERPAYMENTS 6.3 Types of Overpayments 6.3.1 TANF Persons are overpaid when they receive benefits for which they are not eligible. There are three types of overpayments: • Error overpayments resulting from DHS failure to take action on known or reported information: This includes miscalculation of a budget or failure to make a timely reduction in benefits based on information fully and timely reported by the recipient.