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Even though overpayment merits are not properly considered at collection hearings, the Administrative Law Judge (ALJ) has discretion to allow them to be discussed. When issues related to the merits of an overpayment are introduced at a delinquency hearing, PACS will request that the Division of Hearing and Appeals (DHA) reschedule a separate merit hearing. PACS will alert the parent or provider and the ALJ that time limits for appealing the merits have likely passed. DHA will notify local agencies via email of the merit hearing. The local agency is required to follow the current procedure for merit hearings, including filing motions to dismiss if the appeal was filed untimely.

If a merit hearing or departmental review already occurred, PACS will provide that information at the time of the delinquency hearing and will request no additional hearing to be scheduled.

When a merit hearing or departmental review results in the need to address a delinquency collection action, the local agency should request to reschedule the merit hearing to a separate delinquency hearing. Local agencies are not expected to defend collection actions just as PACS does not defend local agency decisions and overpayments.

This section last updated 10/1/2023

Section 22.5 Local Agency Retention of Records The department and local agencies are responsible for retaining all records, including letters and notices sent by the local agency, for a minimum of three (3) years after an overpayment claim reaches a zero balance or the debt is written off.

This section last updated 10/1/2023