Setting a Recoupment

Recoupments are for Non-Medical programs only.

NOTE: A Repayment Term Detail must always be completed regardless if the program is in an active or closed status, or if the Repayment Agreement was returned. Always set the Repayment Terms and set the Repayment Terms and Recovery Account to Active even if the person did not return an agreement and/or the case is closed.  If the repayment terms are set and the Recovery Account is active, repayment will begin immediately if the consumer reapplies.

To Set Up a Recoupment

  1. Select Fiscal from Global Navigation.

  2. Select Collections from Local Navigation. The Recovery Account Search page displays.

  3. Complete a search for the recovery account.

  4. Select the Recovery Account using the Recovery Account number hyperlink. The Recovery Account Detail page displays.

  5. Select Repayment Term Summary from Task Navigation. The Repayment Term Summary page displays.

  6. Click the Add Repayment Terms button. The Repayment Term Detail page displays.

  7. Select the Responsible Party from the drop-down menu.

  8. Select the Status from the drop-down menu.

  9. Select the Repayment Type from the drop-down menu.

  1. Select the correct Frequency of the repayment from the drop-down menu.

  2. If the consumer reports he/she would like to repay more than the minimum Repayment required by policy, select Yes from the Override Cause Code drop-down menu. If the consumer has not agreed to pay more than the minimum Repayment required by policy, no selection is needed.

  3. Enter either a Repayment/Maximum Amount or a Repayment Pct (%) in the text box based on the Repayment Agreement received or policy if no Repayment Agreement was received.

NOTE: Rules automatically use the minimum requirements for benefit reduction unless the consumer has agreed to pay more than the minimum.

  1. Enter the From date using the <mm/dd/yyyy> format or the calendar icon. The From date should be set as the first day of the following month for closed programs or the first day the recoupment begins for active programs. Do not enter an End Date.

  2. Click the Save and Return button to return to the Repayment Term Summary page.

  3. Click the Close button. The Recovery Account Detail page displays.

NOTE: Activation of the Recovery Account begins the collections process. Only change a Recovery Account status to Active after the consumer has had the opportunity to respond to the overpayment correspondence or after a fraud determination is completed when the overpayment is Pending Fraud Prosecution.

  1. Click the Edit button to make the page editable.

  2. Select Active from the Status from the drop-down menu.

  3. Select a Status Reason from the drop-down menu.

  4. Click the Save button. The Recovery Account Detail redisplays in View mode with the updates.

  5. After activating a Recovery Account, if the consumer has an Active program from which recoupments can be made, the worker should run EDBC for any programs that can recoup payments for that Recovery Account. Always use timely notice when beginning a recoupment.

NOTE: To do this, the worker should look at the responsible parties on the Recovery Account and search for the active programs that match up with the Recovery Account that those responsible parties are associated to.  There are situations where the responsible parties are associated to cases outside of the case to which the Recovery Account is linked.