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July 1, 2026

6 Section 21.1.1 Parent Overpayment Appeals .........................................................................................164 Section 21.1.2 Parent IPV Appeals .........................................................................................................164 Chapter 22 Collections ....................................................................................................................................164 Section 22.1 Parent Overpayment Recovery ..............................................................................................164 Section 22.1.1 Parent Repayment Agreement .......................................................................................165 Section 22.2 Provider Overpayment Recovery ...........................................................................................165 Section 22.2.1 Provider Repayment Agreements ..................................................................................165 Section 22.3 Dunning Notices .....................................................................................................................166 Section 22.4 Delinquency Collections Appeals Process ...........................................................................166 Section 22.5 Local Agency Retention of Records ......................................................................................167 Appendices ......................................................................................................................................................168 Appendix I Statutes and Administrative Rules ...............................................................................................169 Appendix II Benefit Calculation Examples .....................................................................................................172 Copayments Under 200% FPL .....................................................................................................................172 Example 1 (Two (2) children, one (1) provider) ......................................................................................172 Example 2 (Two (2) children, two (2) providers) ....................................................................................173 Copayments Over 200% FPL .......................................................................................................................173 Assuming the Full Cost of Care ..................................................................................................................174 Example 1 (No Subsidy Amount) ............................................................................................................174 Example 2 (Small Subsidy Amount) ........................................................................................................175 Parent Share .................................................................................................................................................175 Appendix III Local Agency Program Integrity Management..........................................................................177 Local Agency Fraud Plans ...........................................................................................................................177 Subcontracting ............................................................................................................................................177 Agency Operations Audits ..........................................................................................................................177 Data Tracking Requirements ......................................................................................................................177 Program Integrity Data Exchange Discrepancies ......................................................................................178 State Wage Income Collection Agency (SWICA) Discrepancies ...........................................................178 Prisoner Data Exchange Discrepancies ..................................................................................................179 Appendix IV Error Prone Profile and Front-End Verification ..........................................................................180 FEV Procedure ..............................................................................................................................................180 Appendix V Red Flag Reports and Referrals ..................................................................................................182 Provider Red Flag Reports ...........................................................................................................................182 Client Red Flag Reports ...............................................................................................................................182 Referrals .......................................................................................................................................................183