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BAM 705 1 of 11 AGENCY ERROR OVERPAYMENTS BPB 2026-009 4-1-2026

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

POLICY All Programs If a household receives benefits, and the department makes an error, the adult(s) in the household must repay the extra benefits they are not eligible for. The benefits must be repaid even if there was no fraud. This item explains agency error (AE) processing and establishment. DEFINITION Agency Error A type of overpayment (OP) or underissuance resulting from an incorrect action or failure to take action by the state agency. Examples include, but not limited to: • Available information was not used or used incorrectly. • Policy was misapplied. • Action by local office or central office staff was delayed. • Computer/system error occurred. • Information was not shared between department divisions, for example, services staff. • Data match reports were not timely acted on (Wage Match, New Hire, BENDEX, etc.). Note: If unable to identify the type of overpayment, process as an agency error. Child Development and Care (CDC) Only There could be agency errors for providers and/or clients/individuals. The following are some typical agency errors. Use this non-all-encompassing list to help determine who is held responsible for the repayment of the overpayment. Agency Errors Related to the Provider • Provider not eligible. • Payments authorized under wrong provider eligibility type.

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Official source

BAM 705 1 of 11 AGENCY ERROR OVERPAYMENTS BPB 2026-009 4-1-2026

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

POLICY All Programs If a household receives benefits, and the department makes an error, the adult(s) in the household must repay the extra benefits they are not eligible for. The benefits must be repaid even if there was no fraud. This item explains agency error (AE) processing and establishment. DEFINITION Agency Error A type of overpayment (OP) or underissuance resulting from an incorrect action or failure to take action by the state agency. Examples include, but not limited to: • Available information was not used or used incorrectly. • Policy was misapplied. • Action by local office or central office staff was delayed. • Computer/system error occurred. • Information was not shared between department divisions, for example, services staff. • Data match reports were not timely acted on (Wage Match, New Hire, BENDEX, etc.). Note: If unable to identify the type of overpayment, process as an agency error. Child Development and Care (CDC) Only There could be agency errors for providers and/or clients/individuals. The following are some typical agency errors. Use this non-all-encompassing list to help determine who is held responsible for the repayment of the overpayment. Agency Errors Related to the Provider • Provider not eligible. • Payments authorized under wrong provider eligibility type.