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BAM 725 8 of 18 COLLECTION ACTIONS BPB 2026-014 5-1-2026

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

The standard administrative recoupment percentage for FAP is: • 10 percent (or $10, whichever is greater) for agency error. • 10 percent (or $10, whichever is greater) for client error. • 20 percent (or $20, whichever is greater) for intentional program violation. Note: In addition to administrative recoupment, FAP supplements to restore lost benefits are automatically offset when entered on Bridges to repay FAP overissuances. The restoration supplement is used in part or in whole to repay overissuances. Delinquent Cash Payments on Active Cases FIP, SDA and FAP Active cases failing to make required court-ordered cash payments for 60 days are sent a DHS-1440E, Notice of Payment Due. All cases sent the DHS-1440E notice informs the client of changing the recoupment method to benefit reduction via Administrative Recoupment (AR). Thirty days after the DHS-1440E is sent, Bridges changes the recoupment type from cash collection to administrative recoupment, unless the client: • Makes a full payment, or • Seeks to renegotiate the monthly cash payment amount, and • Their financial circumstances warrant a lower monthly payment by the court order. COLLECTIONS ON INACTIVE PROGRAMS FIP, SDA, CDC and FAP Overissuance balances on inactive cases must be repaid by lump- sum or monthly cash payments unless collection is suspended; see SUSPENDED COLLECTION ACTIONS in this item. Benefit Recovery System sends a collection notice when programs or cases close and an outstanding overissuance exists; see AUTOMATED DELINQUENCY NOTICES in this item.

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Page 8

Official source

BAM 725 8 of 18 COLLECTION ACTIONS BPB 2026-014 5-1-2026

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

The standard administrative recoupment percentage for FAP is: • 10 percent (or $10, whichever is greater) for agency error. • 10 percent (or $10, whichever is greater) for client error. • 20 percent (or $20, whichever is greater) for intentional program violation. Note: In addition to administrative recoupment, FAP supplements to restore lost benefits are automatically offset when entered on Bridges to repay FAP overissuances. The restoration supplement is used in part or in whole to repay overissuances. Delinquent Cash Payments on Active Cases FIP, SDA and FAP Active cases failing to make required court-ordered cash payments for 60 days are sent a DHS-1440E, Notice of Payment Due. All cases sent the DHS-1440E notice informs the client of changing the recoupment method to benefit reduction via Administrative Recoupment (AR). Thirty days after the DHS-1440E is sent, Bridges changes the recoupment type from cash collection to administrative recoupment, unless the client: • Makes a full payment, or • Seeks to renegotiate the monthly cash payment amount, and • Their financial circumstances warrant a lower monthly payment by the court order. COLLECTIONS ON INACTIVE PROGRAMS FIP, SDA, CDC and FAP Overissuance balances on inactive cases must be repaid by lump- sum or monthly cash payments unless collection is suspended; see SUSPENDED COLLECTION ACTIONS in this item. Benefit Recovery System sends a collection notice when programs or cases close and an outstanding overissuance exists; see AUTOMATED DELINQUENCY NOTICES in this item.