Family Services, Dept. of

Eligibility Integrity Unit (EIU)

Chapter 6: Collection

Effective Date: 01/18/2025 to Current

Rule Type: Current Rules & Regulations

Reference Number: 049.0037.6.01182025

Chapter 6

Section 1. Methods of Collection. The Department of Family Services (Department) may collect an established overpayment through any method described in this Chapter. The Eligibility Investigator shall notify the responsible individual or adult recipient who was overpaid public assistance benefits of the amount, reason, time frame covering debt, how the debt was calculated and who to contact to arrange repayment.

Section 2. Acceptable Forms of Payment.

(a) If a recipient has an open Supplemental Nutrition Assistance Program (SNAP) or Personal Opportunities with Employment Responsibilities (POWER) case, a portion of their benefit shall automatically be deducted from their household's monthly amount until the SNAP or POWER overpayment claim is paid in full.

(b) Voluntary payment shall be accepted in any form acceptable to the Department including money orders, personal checks, electronic funds transfers, electronic benefit transfers, credit card payments, or cash.

Section 3. Non-payment Outcomes.

(a) The following involuntary collection actions may be applied to the individual responsible for repayment:

(i) For SNAP, offset through the United States Treasury Offset Program (TOP); or

(ii) For any public assistance program overpayment, filing of a civil action, which may result in, but is not limited to:

(A) Garnishment of earnings or bank accounts; or

(B) Liens.

Section 4. Compromise of SNAP Debts.

(a) A portion of the debt may be compromised:

(i) If the household circumstances warrant;

(ii) With an agreement between DFS and the individual that the remaining balance shall be paid within a specified time; and (iii) With the approval of the Eligibility Integrity Unit Manager.

(b) The full amount of the debt may be compromised based on the household's economic circumstances which dictate that the claim will not be paid in three (3) years; however, the debt must be active for the TOP.

Section 5. Termination and Reinstatement of SNAP Debts.

(a) A SNAP debt shall be terminated if:

(i) After a claim is established, the EIU determines that the claim is invalid.

(ii) All adult household members die, unless recovery is expected to be pursued against the estate.

(iii) The claim balance is twenty-five dollars ($25.00) or less and the claim has been delinquent for ninety (90) days or more, unless other claims exist against the household resulting in an aggregate claim total of greater than twenty-five dollars ($25.00).

(iv) It is determined that it is not cost effective to pursue the claim any further.

(v) The claim is delinquent for three (3) years or more, unless the debt will be pursued through the TOP.

(vi) The household cannot be located after reasonable efforts.

(vii) If bankruptcy is filed, unless the debt is associated with an intentional program violation (IPV) or criminal adjudication.

(b) A SNAP debt may be reinstated if a new collection method or unforeseen event substantially increases the likelihood of further collection.

Section 6. Compromise of Child Care Recipient Debts.

(a) A portion of the debt may be compromised:

(i) If the household circumstances warrant;

(ii) With an agreement between the Department and the individual that the remaining balance shall be paid within a specified time; and

(iii) With the approval of the Eligibility Integrity Unit Manager.

Section 7. Termination of Child Care Recipient Debts.

(a) A Child Care debt shall be terminated if:

1. (i) After a claim is established, the Department determines that the claim is invalid;
2. (ii) All adult household members die, unless recovery is expected to be pursued against the estate;
3. (iii) Bankruptcy is filed, unless the debt is associated with an IPV; or
4. (iv) The overpayment is older than five (5) years and has been delinquent for three (3) or more years.

Section 8. Compromise of POWER Debts.

(a) A portion of the debt may be compromised:

1. (i) If the household circumstances warrant;
2. (ii) With an agreement between the Department and the individual that the remaining balance shall be paid within a specified time; and
3. (iii) With the approval of the Eligibility Integrity Unit Manager.

Section 9. Termination of POWER Debts.

(a) A POWER debt shall be terminated if:

1. (i) After a claim is established, the Department determines that the claim is invalid;
2. (ii) All adult household members die, unless recovery is expected to be pursued against the estate.
3. (iii) Bankruptcy is filed, unless the debt is associated with an IPV;
4. (iv) The overpayment is older than five (5) years and has been delinquent for three (3) or more years;
5. (v) The overpayment amount is less than thirty-five dollars ($35.00) and the individual is no longer receiving public assistance; or

(vi) The overpayment amount owed by an individual no longer receiving public assistance is thirty-five dollars ($35.00) or more and the Department determines that it is no longer cost-effective to continue overpayment recovery as long as reasonable efforts were made to recover the debt.

Section 10. Termination of Medicaid Debts.

(a) A Medicaid debt shall be terminated if:

(i) The case was established at least ten (10) years prior to request for termination;

(ii) The last payment was credited to the debt at least three (3) years prior to the request for termination;

(iii) The inability to repay the debt is documented and warranted; and

(iv) Attempts to locate the debtor have been unsuccessful.