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Page 138 Iowa Department of Health and Human Services Employees’ Manual Overpayment Recovery Title 13: Social Service Resources Chapter G: Child Care Assistance June 14, 2024 Overpayments Subject to Recovery The following sections describe procedures for: ▪ Overpayments subject to recovery ▪ How to determine when the overpayment occurred ▪ How to calculate overpayments ▪ Failure to cooperate ▪ Notifying DIAL of the overpayment ▪ DIAL overpayment recovery process ▪ Overpayment refunds and payments ▪ Sanctions for provider fraud ▪ Appeals process Overpayments Subject to Recovery Legal reference: 441 IAC 170.9(237A) Recover overpayments caused by: ▪ Provider error ▪ Client error ▪ Agency error ▪ Assistance paid pending an appeal decision Establish the amount of the overpayment and initiate recovery no later than 90 days after the overpayment is discovered. Do not make a referral to DIAL if the provider has returned the state warrant for the overpayment in question, as long as the warrant covers the total amount of the overpayment and the period of overpayment is only one month. For recovery purposes, the person has not “received” the benefit if the warrant is not cashed, so no overpayment exists. If a household files for bankruptcy, send the notice of bankruptcy to DIAL immediately, so the state can file a claim in the United States Bankruptcy Court. Provider Error Legal reference: 441 IAC 170.1(237A) Recover overpayments that result from the following child care provider errors: ▪ False or misleading statements on billing claim about the children receiving services. ▪ False or misleading documentation of hours when service was provided.