Correction of Overpayments and Underpayments

The Department has the responsibility to identify and correct overpayments and underpayments. The Department must promptly correct underpayments to current clients and to those who would have been clients if the mistake causing the underpayment had not occurred. When an underpayment is established, the Department shall send written notice to the client that: (1) includes the amount; and (2) informs the client of the right to request a fair hearing. Before an action to recoup an overpayment as provided in 106 CMR 706.290, the Department shall notify the client in accordance with 106 CMR 702.500: Notification of Proposed Action. If both an underpayment and an overpayment exist, the Department may offset one against the other if the existence and amount of both the underpayment and the overpayment can be promptly determined. Otherwise, the Department shall proceed to correct the underpayment and overpayment independently. Retroactive corrective underpayments shall not be considered as income or as an asset for purposes of determining continued eligibility and amount of assistance either in the month paid or in the following month. All overpayments are subject to recovery by the Department. Overpayments involving possible fraud shall be referred to the Bureau of Special Investigations (BSI).