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BAM 720 15 of 19 INTENTIONAL PROGRAM VIOLATION BPB 2026-009 4-1-2026

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

• Send a Collection Notice to the individual as renotification of the overpayment claim. • If warranted, update the Delinquency Date under Benefit Recover, Claim Adjustment 31 days after the Collection Notice is sent. This is currently a manual process. If MDHHS is not upheld: • Immediately request a reconsideration/rehearing. • Act in accordance with the decision and order. • Decrease the balance under Benefit Recovery, Claim Adjustment with Hearing Decision as the reason from the drop- down. Note: CDC providers do not have hearing rights. INITIATING OVERPAYMENT FIP, SDA, RCA, CDC and FAP Initiate the overpayment on the effective date of the DHS-4357 by entering or changing the overpayment claim on Benefit Recovery System (BRS). Note: If a court or OIG specifies an IPV overpayment amount less than the total amount, and the difference is not due to a calculation error, process: • The court ordered amount as IPV. • The remaining balance as a client error. Active programs are subject to benefit withholding (BW) also known as administrative recoupment (AR) to repay the overpayment. Inactive programs are subject to cash repayment. BRS will automatically send collection notices to inactive cases; see BAM 725. BRS Entry FIP, SDA, RCA and FAP To start benefit withholding/administrative recoupment and other collections on active and inactive FIP, SDA, RCA and FAP programs, take the following actions in Bridges:

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Page 15

Official source

BAM 720 15 of 19 INTENTIONAL PROGRAM VIOLATION BPB 2026-009 4-1-2026

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

• Send a Collection Notice to the individual as renotification of the overpayment claim. • If warranted, update the Delinquency Date under Benefit Recover, Claim Adjustment 31 days after the Collection Notice is sent. This is currently a manual process. If MDHHS is not upheld: • Immediately request a reconsideration/rehearing. • Act in accordance with the decision and order. • Decrease the balance under Benefit Recovery, Claim Adjustment with Hearing Decision as the reason from the drop- down. Note: CDC providers do not have hearing rights. INITIATING OVERPAYMENT FIP, SDA, RCA, CDC and FAP Initiate the overpayment on the effective date of the DHS-4357 by entering or changing the overpayment claim on Benefit Recovery System (BRS). Note: If a court or OIG specifies an IPV overpayment amount less than the total amount, and the difference is not due to a calculation error, process: • The court ordered amount as IPV. • The remaining balance as a client error. Active programs are subject to benefit withholding (BW) also known as administrative recoupment (AR) to repay the overpayment. Inactive programs are subject to cash repayment. BRS will automatically send collection notices to inactive cases; see BAM 725. BRS Entry FIP, SDA, RCA and FAP To start benefit withholding/administrative recoupment and other collections on active and inactive FIP, SDA, RCA and FAP programs, take the following actions in Bridges: