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BAM 715 6 of 11 CLIENT/CDC PROVIDER ERROR OVERPAYMENTS BPB 2026-009 4-1-2026

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

If the FAP budgetable income included FIP/SDA/RCA benefits, use the grant amount actually received in the overpayment month, even when the FIP/SDA/RCA benefit is being recovered. A supplement is counted in the month for which it was intended. Determining Budgetable Income FIP, SDA, RCA, CDC and FAP If improper reporting of income caused the overpayment, use actual income for that income source and convert to a standard monthly amount; see BEM 505. Any income properly budgeted remains the same in the corrected budget month(s). This income was already converted within Bridges to a standard monthly amount. Example: Mandatory program group members Joseph and Michelle both started working. Only Joseph's income was reported. For the corrected calculation, use actual income for Michelle and the projected income already budgeted correctly for Joseph. Note: When verifying actual income, if an employer does not respond to or cannot provide the information or incompletely fills out the verification form, use the IG-011, Employee Wage History by Recipient ID, report as the best available information of income; see BAM 130 and BEM 505. Income is not converted from a wage match or IG-011, Employee Wage History by Recipient ID, report. This is quarterly income and can be divided by three (or less based on available information) to a standard monthly amount. FAP Only For client error overpayments, do not allow the 20 percent earned income deduction on unreported earnings. Example: If a household reports monthly earned income of $500 when it actually received $800, do not apply the earned income deduction to the difference of $300 in unreported earnings. OVERPAYMENT ADJUSTMENTS