Page 7

BAM 725 7 of 18 COLLECTION ACTIONS BPB 2026-014 5-1-2026

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

Administrative recoupment can be deducted from more than one active case for a single overissuance. See BAM 400, CASH BENEFITS, Openings, for FIP and SDA early payment procedures. AR Amount FIP, SDA and CDC FIP and SDA benefits are reduced for recoupment by a percentage of the payment standard. The administrative recoupment amount automatically changes when the payment standard changes. The standard administrative recoupment percentage is always used unless a court has ordered a different percentage or a specific dollar amount. The standard administrative recoupment percentage for FIP, SDA and CDC is: • 5 percent for agency error. • 5 percent for client error. • 10 percent for intentional program violation. • 20 percent for CDC provider intentional program violation. Note: When necessary, the administrative recoupment amount is automatically reduced in order to leave a $2 grant payment to the client. FAP Only FAP benefits are reduced for recoupment by a percentage of the monthly FAP entitlement. (The entitlement amount is the amount of FAP a group would receive if any intentional program violation- disqualified members were included in the eligible group.) Administrative recoupment occurs only on current month issuances and automatically changes when the monthly issuance amount changes. Use the standard administrative recoupment percentage unless a court has ordered a different administrative recoupment percentage or a specific dollar amount. The minimum administrative recoup- ment amount is $10, unless the final overissuance payment is less than $10.