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COMBINED MANUAL

ISSUE DATE 08/2016

RECOUPMENT

0025.21.15

For information on the amount of recoupment, see 0025.21.15.03 (Amount to Recoup).

Consider the unit to be participants even if recoupment reduces the benefit to $0.

Do not recoup more than the actual overpayment of assistance.

Do not recoup an amount greater than the mandated amount. If a client requests recoupment for a greater amount, send a monthly bill to the client for the amount that is greater than the mandated recoupment amount. See 0025.21.15.03 (Amount to Recoup).

The county agency must recoup from participants if the unit fails to pay the claim in full within 30 days of being notified of the claim.

MFIP: The following provisions apply to all overpayments:

● For applicants with prior overpayments, begin recoupment with the 1st full month of eligibility.

● For agency error TANF cash overpayments incurred after August 1, 2016, only pursue recovery of collectible claims. See 0025.12.03 (Overpayments Exempt From Recovery).

● Apply recouped amounts to overpayments starting with the oldest fraud AFDC, FGA, MFIP field trials, MFIP, or SNAP overpayment, followed by the oldest non-fraud AFDC, FGA, MFIP field trials, MFIP, or SNAP overpayment.

● Recoup AFDC, FGA, SNAP, MFIP, and MFIP field trial overpayments from MFIP benefits. DO NOT recoup AFDC overpayments from an MFIP case if the adult on MFIP was a child when the AFDC overpayment occurred. MAXIS will recoup from MFIP to repay AFDC, FGA, SNAP, MFIP and MFIP field trial claims. For the order of recovery, see 0025.15 (Order of Recovery - Participants).

● Do not recoup from BOTH the cash and food portions of an MFIP grant at the same time.

- If the cash portion of the MFIP grant is $50 or more, recoupment will be taken from ONLY the cash portion of the grant and applied to both the cash and food portions of an MFIP claim, or to an AFDC and/or a SNAP claim.

- If the cash portion of the MFIP grant is less than $50 and there is an active food claim, recoupment will be taken from ONLY the food portion of the MFIP grant and applied to the food portion of an MFIP claim or to a SNAP claim.

- If there are no active food claims, and the MFIP cash portion is less than $50, recoupment will be taken from the available cash and applied to active MFIP or AFDC claim(s).

● Clients may have a restitution plan through court services. The diversion restitution order may accept recoupment as partial or full satisfaction. This restitution plan is in addition to and separate from the mandatory recoupment amount for participants and does not affect the monthly recoupment calculation. The total restitution (repayment plan and recoupment) may be more than the actual overpayment. The court will collect the amount greater than the overpayment.

● If an Uncle Harry case and MFIP case are both responsible for a SNAP claim, recoup from both cases at the same time, if the Uncle Harry members would have been considered mandatory unit members. If MFIP and Uncle Harry Food Support are issued via different case numbers, make sure both cases are made responsible for the claim. See TEMP Manual TE13.030 (Food Support Uncle Harry Tip Sheet).

● Recoup from stand-alone SNAP to repay the federal food portion of MFIP claims.

● Do NOT recoup MFIP cash benefits from a household’s Uncle Harry Food Support case.