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

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

Example: A potential agency error was assigned to an OEA for the period of January 2015 through July 2016. The OEA discovers an overpayment in February 2022 for the months of March 2016 through July 2016. The OEA only pursued the latest five months because the months of January 2015 through February 2016 occurred more than six years before the discovered overpayment. To determine the first month (or first pay period for CDC) of the overpayment period, allow time for: • The client/individual reporting period per BAM 105 and • The full standard of promptness (SOP) for change processing per BAM 220 and • The full negative action suspense period per BAM 220. Exception: When an agency error occurs at application, redetermination, semi-annual, or mid-certification, allow the SOP for change processing per BAM 220 and the full negative action suspense period per BAM 220 when determining the first month (or first pay period for CDC) of the overpayment. The client/individual already reported their information on these forms per BAM 105. Example: Client/individual applies for FAP and FIP on 08-29-2023 for a group size of three. Head of household (HOH) reports Supplemental Security Income (SSI) income of $800, $400 rent, and heat and utility expenses. Department failed to budget the SSI income. First month of the overpayment period for FAP is determined as follows: • HOH reporting period is date of application - 08-29-2023. • Ten days for change processing - 09-08-2023. • Twelve-day negative action suspense period - 09-20-2023. • First month of OP is 10-2023. Using the example above, the first month of the overpayment period for FIP is determined as follows: • HOH reporting period is date of application - 08-29-2023. • Fifteen workdays for change processing - 09-20-2023 (09-04- 2023 was the state observed holiday of Labor Day). • Twelve-day negative action suspense period - 10-02-2023. • First month of OP is 11-2023.