Recoupment of Foster Care Overpayments 623-05-20-20

(Revised 4/20/20 ML #3579)

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PI 21-10

 

 

The Department’s payment system has the ability to recoup overpayments from foster care providers. The payment system can automatically reduce any debits (such as the overpayment) specific to a foster care provider. If auto recoupment of overpayments is not possible, the Human Service Zone will seek a direct recoupment from the foster care provider.

 

The procedure for overpayment recoupment is as follows:

1. The eligibility worker must create an overpayment in the system specific to the child and provider.

2. The eligibility worker must review the provider placement history to see if there is a current placement with the provider.
   
   
3. When an overpayment has occurred, CFS must be notified by the eligibility worker by use of the SFN 839, Foster Care Overpayment Notification, once the overpayment is created.
   
   
4. Overpayments can be auto recouped if the provider has a placement or payment due. The payment system will allow the reduction if the auto recoupment is set up in advance. The payment system auto-recoupment function can only be entered by administration from Children and Family Services.
   
   
5. Overpayments will require a direct recoupment when the provider does not have a placement or payment due. The Human Service Zone collects the overpayment from the foster care provider by requesting a refund. The eligibility worker must send the provider a formal letter detailing the reason for the overpayment and directions on how to return the funds to the Department. Upon receipt of the refund, the Human Service Zone must return the funds to NDDHS Fiscal Administration with a completed credit form (SFN 827). NDDHS Fiscal Administration will satisfy the overpayment in the payment system.

The payment system has restrictions regarding when an auto recoupment can occur specific to a provider type:

 

Provider Type	Checkwrite
Family Foster Home (FA, AF, YW,)	Auto recoupment only allowed during the standard check write (end of the month).
Treatment Foster Home (PATH and LSS)	Auto recoupment allowed during all check writes (weekly).
QRTP Facility (Various)	Auto recoupment allowed during all check writes (weekly).
SIL Agency (DBGR and PATH)	Auto recoupment allowed during all check writes (weekly).

 

The Department will grant 90 days for the Human Service Zone eligibility worker to collect the overpayment directly from the foster care provider. After the 90 days, the child’s custodial agency will be responsible to reimburse the overpayment in efforts to satisfy the payment system.

 

Collections:

If recoupment from a foster care provider cannot be accomplished, NDDHS will work to collect the overpayment through a collection agency. If the agency does collect the overpayment from the provider, the money will be paid to NDDHS and the CCWIPS payment record will be adjusted accordingly. If the collection agency holds the account for six years and does not have success in collecting the overpayment, state law requires the collection agency to return the account to NDDHS.

 

NDDHS can make the determination to review and terminate a foster care overpayment account and the overpayment amount does not exceed a value approved by Fiscal Administration.