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BAM 725 15 of 18 COLLECTION ACTIONS BPB 2026-014 5-1-2026

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

• A notification from MDHHS Legal Affairs will be sent if any intentional program violation overissuances were successfully blocked from discharge. • Change the status type to standard recoupment. If MDHHS or MiLEAP obtains an order of non-dischargeability from the U.S. Bankruptcy Court, change the status type back to standard recoupment on each of the affected overissuances to enable collection activities to resume. Keep all bankruptcy documents in the case record’s legal packet. The reconciliation and recoupment section coordinates bankruptcy actions between Treasury and MDHHS. If any claim shows referred to collections contact Reconciliation and Recoupment section at 1- 800-419-3328. Death Enter the status type of deceased so Bridges will suspend all collection actions on Benefit Recovery System. The overissuance will be written off at the next quarterly Benefit Recovery System write-off. TERMINATED COLLECTIONS FIP and SDA BRS Write-Off Every quarter, Benefit Recovery System writes off overissuances that are not collectible. Overissuances are not collectible when: • The program has been closed six years from the most recent of the following dates: Overissuance end date, or Establishment date, or Last payment date on any overissuances. RECONCILING GH REPORTS Bridges generates reports that must be acted on by staff.

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Page 15

Official source

BAM 725 15 of 18 COLLECTION ACTIONS BPB 2026-014 5-1-2026

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

• A notification from MDHHS Legal Affairs will be sent if any intentional program violation overissuances were successfully blocked from discharge. • Change the status type to standard recoupment. If MDHHS or MiLEAP obtains an order of non-dischargeability from the U.S. Bankruptcy Court, change the status type back to standard recoupment on each of the affected overissuances to enable collection activities to resume. Keep all bankruptcy documents in the case record’s legal packet. The reconciliation and recoupment section coordinates bankruptcy actions between Treasury and MDHHS. If any claim shows referred to collections contact Reconciliation and Recoupment section at 1- 800-419-3328. Death Enter the status type of deceased so Bridges will suspend all collection actions on Benefit Recovery System. The overissuance will be written off at the next quarterly Benefit Recovery System write-off. TERMINATED COLLECTIONS FIP and SDA BRS Write-Off Every quarter, Benefit Recovery System writes off overissuances that are not collectible. Overissuances are not collectible when: • The program has been closed six years from the most recent of the following dates: Overissuance end date, or Establishment date, or Last payment date on any overissuances. RECONCILING GH REPORTS Bridges generates reports that must be acted on by staff.