340:65-9-6. Development of repayment
(a) Repayment of established overpayments. Households must make repayment on all established overpayments regardless of the reason for the overpayment.
(1) Adult and Family Services (AFS) Benefit Integrity and Recovery (BIR) staff initiates collection efforts against all adult household members included in the benefit at the time the overpayment occurred except members who filed bankruptcy or are deceased.
(2) Collection may be received from more than one household for the same claim when responsible debtors separate. AFS BIR staff sends the debtor(s) the Notification of Overpayment that explains the acceptable methods of repayment for the debt classification.
(3) When the debtor(s) requests a fair hearing regarding the overpayment within 30-calendar days of the Notification of Overpayment issuance date, collection is suspended until after the hearing decision is made.
(b) Repayment options. The debtor(s) may repay an overpayment: • 1
(1) in one lump sum by personal check, money order, or cashier's check; • 2
(2) in regular monthly installments by personal check, money order, or cashier's check; or • 2
(3) by benefit reduction, also known as recoupment. • 3 When the debtor(s) continues to receive State Supplemental Payment or Temporary Assistance for Needy Families (TANF), AFS BIR staff recoups the debtor(s)’ monthly benefit by 10 percent, rounded up to the nearest dollar, for all overpayment classifications. When a TANF overpayment is due to an intentional program violation, in addition to recoupment, AFS BIR staff also applies a 25 percent, rounded up to the nearest dollar, payment standard reduction penalty per Oklahoma Administrative Code 340:10-3-57(g).
(c) Monthly statement. When the debtor(s) does not repay the overpayment in full, a monthly statement is computer generated around the 20th of each month and sent to the debtor(s) when appropriate. • 4
(d) Recoupment rate changes. The recoupment rate cannot be changed unless the overpayment or the benefit received by the client is less than the recoupment amount.
(1) When the benefit amount is equal to the specified percentage recoupment amount, the full benefit is recouped and the case remains active. • 5 When the client requests a fair hearing regarding the overpayment within 30-calendar days of the issuance date of the Notification of Overpayment, recoupment is suspended until a hearing decision is made.
(2) When AFS BIR staff initiates or terminates recoupment, a computer-generated notice is sent to the client stating the new benefit amount and its effective date.
(d) Repayment plan reconsideration. The debtor(s) may request reconsideration of the repayment plan by submitting changes in family and financial circumstances directly to AFS BIR. AFS BIR staff makes adjustments to the repayment plan when circumstances warrant. • 6
INSTRUCTIONS TO STAFF 340:65-9-6
1. The person responsible for repayment is the debtor(s) which may include the payee of the case, any other adult who was included in the household at the time the overpayment occurred, and any other adults deemed responsible for the incident of the overpayment. Examples of adults not included in the household who may be responsible for repayment include adults that trafficked the household's benefits or a person acting as an authorized representative for the household.
2. The debtor(s) may choose to make a voluntary payment in one lump sum by personal check, money order, cashier's check, or make monthly payments. Monthly payments do not necessarily absolve the debtor(s) of other collection actions that may be warranted. Payment may be submitted any date after the overpayment is established.
(1) Form 08OP011E, Repayment Agreement, instructs the debtor(s) not to send cash through the mail.
(2) Payments may be sent to the Oklahoma Department of Human Services Financial Services, PO Box 248893, Oklahoma City, Oklahoma 73124-9914.
3. Adult and Family Services (AFS) Benefit Integrity and Recovery (BIR) staff enters the recoupment code in the system to reduce the client’s monthly benefit and a computer-generated notice is sent to notify the client of the new benefit amount.
4. For example, a monthly statement does not computer-generate when the debtor(s) moves and does not inform DHS. The monthly statement includes the:
(1) statement date;
(2) account identification number;
(3) overpayment case number(s);
(4) debtor(s) name and address;
(5) new overpayment amounts;
(6) itemized payment amount, payment dates, and new overpayment amounts since the last billing cycle;
(7) billing date;
(8) account balance; and
(9) overpayment balances by program.
5. Because the specified percentage recoupment amount is rounded up to the nearest dollar, it may be equal to the benefit amount. For example, when the benefit amount is one dollar and the specified percentage is 10 percent, the specified percentage would be 10 cents if not for rounding. Because of rounding, the specified percentage is one dollar which reduces the benefit amount to zero.
6. Per Oklahoma Administrative Code 340:65-9-4(i), AFS BIR staff does not renegotiate the repayment plan with the debtor(s) when the court stipulates a repayment plan unless the debtor(s) sentence expired and the court has no action pending against the debtor(s).