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BAM 715 4 of 11 CLIENT/CDC PROVIDER ERROR OVERPAYMENTS BPB 2026-009 4-1-2026

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

Simplified Reporting FAP Only The first month of overpayment is two months after the actual monthly household income exceeded the simplified reporting (SR) limit; see BAM 200. Example: The group’s gross income for April exceeded the SR limit. The group should have reported this by May 10th but did not. June is the first month of the overpayment. However, using the example above, if the group's gross income falls below the SR limit any time after April and May and does not exceed the SR limit again during the certification period, overpayment establishment is not necessary. If it does exceed the SR limit again during the certification period and the individual/client does not report, all months that exceeded the SR limit after April and May would be processed as a potential overpayment. Example: Within the certification period of July through June, Bert started a job and called his specialist to report the hours and wages. Bert is put in SR in February and was sent a letter stating his SR income limit. After a week he gets an increase in hours which puts him over the limit for February. He does not report by March 10th. In April the hours were reduced putting him under the SR income limit. In May Bert is promoted and goes over the SR income limit and again does not report by June 10th. The last week of June he is demoted but still over the SR income limit. Bert’s overpayment period would be May and June. OVERPAYMENT AMOUNT FIP, SDA, RCA, CDC and FAP The amount of benefits issued to the individual/client, household, or provider in excess of what the recipient(s) was/were eligible to receive. FAP Only If the client error involves two or more FAP groups which should have received benefits as one group, determine the error amount by the following: