Section 7 AAC 41.420 - Incorrect payment of program benefits(a) An incorrect payment of program benefits occurs if a family or provider receives a benefit or payment to which the family or provider is not entitled or does not receive a benefit or payment to which the family or provider is entitled under AS 47.25.001 - 47.25,095 and this chapter.(b) If the department determines under 7 AAC 41.415(c) that an underpayment of program benefits for a participating family or to a provider has occurred, the department will provide written notice to the family or provider that includes (1) the determination and basis of that determination;(2) the dollar amount of the underpayment; and(3) how the department will correct the underpayment of program benefits.(c) If the department determines under 7 AAC 41.415(c) that an overpayment of program benefits of $100 or more to a family or provider has occurred, regardless of the cause, the department will provide written notice to the family or provider that (1) includes the determination, and the basis for that determination;(2) the dollar amount of the overpayment and the period over which the overpayment occurred; the department will not seek repayment of any overpayment that occurred earlier than 12 months before the discovery of the error;(3) advises the family or provider of the requirement to develop a repayment plan;(4) advises that if the family or provider refuses to cooperate in the development of a repayment plan within 30 days after receiving notice under this subsection, the department will take action to recover the overpayment through collection procedures or deduction from any future amounts paid under AS 47.25.001 - 47.25.095 and this chapter; and(5) advises the family or provider of the right to request a hearing under 7 AAC 49 for families or 7 AAC 41.443 for providers.(d) The department will consult with the family or provider to develop a repayment plan. Any repayment plan developed under this subsection must be approved by the department.(e) If the department determines that a family or provider, or former family or provider, will suffer extreme hardship if required to repay the monthly amount agreed upon in the repayment plan under (d) of this section, the department may (1) allow the family or provider, or former family or provider, to make lower monthly payments; or(2) temporarily suspend repayment for up to three months upon receipt of evidence of extreme economic hardship.(f) The department may suspend efforts to collect an overpayment if collection activities are no longer cost-effective.(g) If the family or provider fails to develop or comply with a repayment plan developed under (c) of this section, the department will (1) take action to recover the overpayment through collection procedures or deduction from any future amounts paid under AS 47,25.001 - 47.25.095 and this chapter;(2) in the case of a provider, remove the name of the provider from the list of eligible providers maintained by the department; the provider may not receive child care assistance benefits or payments until satisfaction of the repayment plan;(3) in the case of a family, place the name of the family on the list maintained under 7 AAC 41.450 of ineligible individuals; a family including an ineligible individual may not receive PASS I, PASS 11, or PASS III child care assistance or payments until the name is removed from the list; and(4) provide a written notice to the family or provider that (A) describes the action the department intends to take, and the effective date of that action; and(B) advises the family of the right to request a hearing under 7 AAC 49 or provider of the right to request a hearing under 7 AAC 41.443,(h) The department may discontinue collection efforts if the department has been unable to establish contact with a former family or provider for 10 consecutive years to develop a repayment plan, or obtain compliance with an established plan, under (c) of this section.Eff. 6/23/2006, Register 178; am 1/5/2017, Register 221, April 2017Authority:AS 47.05.010
AS 47.25.001