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BAM 700 1 of 10 BENEFIT OVERPAYMENTS BPB 2026-009 4-1-2026

BRIDGES ADMINISTRATIVE MANUAL STATE OF MICHIGAN DEPARTMENT OF HEALTH & HUMAN SERVICES

SPOLICY All Programs When an individual/client, household, or provider receives benefits exceeding what they were eligible to receive, the Michigan Department of Health and Human Services (MDHHS) must attempt to recover the overpayment (OP). This item explains overpayment types, responsibilities, and timeframes. DEFINITIONS Benefit Recovery System (BRS) The system within the Bridges application that contains all established Family Independence Program (FIP), State Disability Assistance (SDA), Refugee Cash Assistance (RCA), Child Development and Care (CDC) and Food Assistance Program (FAP) overpayment claims. Benefit Withholding (BW) A process where some or all the benefits a recipient is otherwise eligible to receive are withheld and applied as a payment to an overpayment claim owed to the State of Michigan. Also known as Administrative Recoupment (AR). Discovery Date The date when an overpayment claim is known to exist, and the amount of the overpayment claim can be reasonably determined. For IPV overpayment claims the discovery date is determined by the individual's signed and dated disqualification agreement, an IPV hearing request, or prosecutorial referral. Establishment Date The date an overpayment claim is created in Bridges and cannot be prior to the discovery date. Overpayment The amount of benefits issued to the individual/client, household, or provider exceeding what the recipient(s) was/were eligible to