049-1 Wyo. Code R. § 1-5

Current through April 27, 2019

Section 1-5 - Collection of Overpayments

(a) FO-DFS shall take automatic benefit reduction on EPICS and require all recoupment cases except Food Stamp agency (AG) overpayments to be opened with a recovery plan on EPICS of percent (%) for the maximum benefit reduction to begin the first payment following either the end of the thirty (30) day notice period when the client fails to respond to the First Notice of Overpayment or the initial payment resulting from a reapplication for benefits for a previously ineligible assistance unit.

(b) FO-DFS/DFS-ORP shall require benefit reduction where allowed by program policy for programs on EPICS and notify DFS-ORP in writing of the date, amount, client name, and program.

(c) FO-DFS/DFS-ORP shall recover the LSC overpayments from the client's resources as the reduction of the patient contribution is prohibited.

(d) FO-DFS/DFS-ORP shall determine the assistance unit's circumstances when not currently receiving benefits regarding monthly income source(s) and amount(s) and monthly mandatory living expenses and resources before attempting any collection by requiring the assistance unit to complete a Financial Affidavit.

(e) An Installment Contract is required for all program overpayments excluding LSC unless payment is received in full prior to the date set for signing the Contract.

(f) FO-DFS/DFS-ORP shall use the assistance unit's circumstances of monthly income and mandatory living expenses from the case file, and the Financial Affidavit to arrive at an equitable repayment amount to be used in the Installment Contract for all programs excluding LSC cases.

(g) FO-DFS/DFS-ORP shall explain to the assistance unit or provider that signing the Installment Contract keeps the State of Wyoming from taking any legal action until the contract is defaulted. Signing the contract keeps the amount of any criminal or civil judgment from being automatically reported to consumer credit agencies which will affect the credit rating of the individual.

(h) FO-DFS/DFS-ORP shall negotiate the Installment Contract for a monthly payment for each program overpayment in an amount agreeable to the assistance unit or provider and in an amount not less than:

(i) an amount which leaves, for AFDC, the assistance unit with income equal to 90% of the payment level using the combination of the grant, income and liquid resources but not less than 10% of the payment level; and/or

(ii) an amount which will pay off each claim in three years or less but not less than the greater amount of $10 or 10% of the monthly benefit for all Food Stamp errors, excluding Intentional Program Violations (IPV); and/or

(iii) the greater amount of $10 or 20% of the allotment for Food Stamp Intentional Program Violations (IPV) established by a disqualification hearing, a court order, or a waiver of right to appear; and/or

(iv) an amount which leaves the child care assistance unit with income equal to 90% of the AFDC payment level; and/or

(v) an amount equal to 10% of the gross income for all other programs but preferably not less than an amount which will pay off the claim in three years.

(i) FO-DFS shall obtain DFS-ORP approval by EPICS Mailbox for a payment in an amount less than the minimum by giving the reason for the request and awaiting the response.

(j) The Installment Contract may be renegotiated and a lower amount allowed when the circumstances of the assistance unit or provider are:

(i) significantly reduced from the circumstances at the time the original Installment Contract was negotiated; and

(ii) the total amount of the claim can still be paid in three years unless a request giving the reason for a longer time is submitted and approval from ORP is received in writing or on the SYSM mailbox.

(k) FO-DFS/DFS-ORP shall require the assistance unit or provider to agree in an Installment contract to pay the overpayment(s) in the priority specified:

(i) 20% in a lump sum payment and monthly payments negotiated in an Installment Contract on the unpaid balance;

(ii) any amount of the total claim in a lump sum payment and monthly payments negotiated in an Installment Contract on the unpaid balance;

(iii) monthly payments negotiated in an Installment Contract on the total claim; or

(iv) benefit reduction for all recipients on the first of the month following the end of a 30-day notice period for all errors except Food Stamp agency (AG) errors.

(l) FO-DFS/DFS-ORP shall encourage non-recipients of all programs excluding LSC cases and cases with only a Food Stamp overpayment to sign the Voluntary Wage Assignment in addition to the Installment Contract when they are employed by explaining that he/she is relieved of the burden to deliver an acceptable form of money payment by a specified due date to the Agency and the required $2.00 fee, or other fee as required by statute or properly promulgated Agency Rule, takes the place of the cost of making the payment in person.

(m) The assistance unit or provider shall be allowed to make payments as follows:

(i) with cash (includes currency, coins, money orders, or checks at the discretion of the agency) for any claim;

(ii) Food Stamp coupons for Food Stamp overpayments only;

(iii) benefit reduction for open AFDC, Food Stamp and LIEAP cases;

(iv) voluntary wage assignment for non-recipients; and

(v) with a power of attorney authorizing transfer of child support.

(n) The assistance unit or provider shall be required to make monthly payments on the unpaid balance of all overpayment claims.

(o) FO-DFS shall refer the case for legal action when the assistance unit fails to respond or refuses to sign the Installment Contract (excluding Food Stamp agency errors) and is no longer receiving assistance.

(p) FO-DFS/DFS-ORP shall require underpayments for AFDC, Child Care and Food Stamps to be recouped against an overpayment claim when an unpaid balance exists.

(q) FO-DFS shall prohibit the authorization of a Food Stamp underpayment for a payment month which is more than 12 months prior to the date of discovery.

(r) FO-DFS shall require a notice for AFDC and/or Food Stamps of the amount of the underpayments recouped against the overpayment claim(s).

(s) FO-DFS shall allow the assistance unit to request a fair hearing within 30 days of the notice on the recoupment of an underpayment.

(t) FO-DFS/DFS-ORP shall offer the voluntary power of attorney and explain the benefits of signing to recipients of AFDC and Child Support Enforcement Services only when the absent parent is paying at least four times per year and the unpaid balance of all program overpayments total at least $250.00.

(u) FO-DFS/DFS-ORP shall explain to the non-recipient assistance unit for all programs, excluding LSC cases, the benefits of voluntary wage assignment. These benefits shall include:

(i) the assistance unit will have no burden to deliver an acceptable form of money payment by a specified due date to the department every month;

(ii) the $2.00 processing fee, or any other fee as required by statute or properly promulgated Agency Rule, is paid by the assistance unit in place of appearing in person or mailing the payment to DFS;

(iii) the wage assignment terminates automatically when the debt is paid in full or the individual changes employers; and

(iv) the voluntary wage assignment stops legal action during the period the contract is in effect.

(v) FO-DFS/DFS-ORP shall accept and record all collections.

(w) FO-DFS/DFS-ORP shall divide cash payments proportionately among each program for which an overpayment exists.

(x) When requested by DFS-ORP, FO-DFS shall reimburse the assistance unit or provider for an over collection.

(y) When requested by DFS-ORP, FO-DFS shall open a claim to recover an overpayment established in another State if the assistance unit is on assistance in Wyoming. If a Wyoming claim is referred to another state for collection, FO-DFS shall await notification of payment.

049-1 Wyo. Code R. § 1-5