us-me/regulation/dhhs/ofi/chapter-301/block-166 — 5. DETERMINING THE AMOUNT TO BE RECOUPED

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(a)The Department shall determine what the benefit would…#

(a) The Department shall determine what the benefit would have been had the household or the Department acted correctly; When determining the amount of the claim for claims established after 10/31/96, the earned income deduction is not applied to that portion of earned income which the household intentionally failed to report; or, failed to report in a timely manner.

(b)This amount is subtracted from the benefit that was…#

(b) This amount is subtracted from the benefit that was actually received. The difference is the amount to be recouped.

NOTE: The calculation must include a separate amount to be applied to individuals who were members of the household for only part of the overpayment period , or were under 18 years of age for part of the overpayment period. This separate amount is applied to those individuals if they cease to be members of the overpaid SNAP household before the full amount is recouped.

B. The Department shall apply appropriate compromises.

A possible compromise of an overpayment shall be assessed and applied when the overpayment is calculated, if eligible.

(1) To qualify for compromise of an overpayment, two requirements must be met. If either of these is not met the household will not be eligible for a compromise. The requirements are:

(a) The overpayment must have been caused by an Agency or Inadvertent Household error; and

(b) The Department determines that, as of the month of calculation, the household is not now and is not expected to be able to pay back the overpayment within three years (36 months), using the standards set forth below.

(i)If the household is receiving SNAP benefits:#

(i) If the household is receiving SNAP benefits:

a) Using the budget as defined in Section 555-6, determine the current Full Month’s benefit amount.

b) Assessing which monthly recoupment amount (ten percent of the benefit or ten dollars), is greater.

c) Determining the total recoupment for a 36-month period, by multiplying the greater figure (ten percent or ten dollars) by 36 months.

(ii)If the household is NOT receiving SNAP benefits:#

(ii) If the household is NOT receiving SNAP benefits:

Using the budget as defined in Section 555-6 to determine the Net SNAP Income (NSI) amount.

Exception: Use of medical expenses greater than $35 per month is not limited to elderly and disabled individuals.

Assessing which monthly recoupment amount (three percent of the NSI or ten dollars) is greater.

Determining the total recoupment for a 36-month period by multiplying the greater figure (three percent or ten dollars) by 36 months.

(2) If the overpayment was the result of trafficking or an Intentional Program Violation, there is no potential for a compromise.

(3) If the total recoupment for a 36-month period is equal to or greater than the current overpayment balance, there is no potential for a compromise.

(4) If the overpayment was caused by an Agency or Inadvertent Household error, and the total recoupment for a 36-month period is less than the current overpayment balance, the current balance of the overpayment will be reduced to the total recoupment for a 36-month period effective for the month following the month of the compromise calculation.

(5) A compromise of an overpayment will not be retroactively applied to any period of repayment (on the same overpayment) prior to the month following the month of the compromise calculation.

(6) The calculation to determine possible compromise of an overpayment is specific to that overpayment. The assessment to determine benefit and NSI amounts does not factor in any obligation to pay other outstanding SNAP overpayments that may exist for the same household.