Causes of Overpayments

(A) Department Error. An overpayment may occur as a result of Department error. Department error includes, but is not limited to, failure of the worker to act on information that affects eligibility or the amount of assistance. (B) Payments Pending a Fair Hearing Decision. An overpayment occurs when the Department's position is upheld on an appeal by a client of a reduction or termination, and aid was paid pending the implementation of the decision. (C) Client Error, Misrepresentation or Withholding of Information. An overpayment may occur as a result of client error. Client error may occur when the client, because of a misunderstanding of his or her responsibilities, fails to notify the Department of a change in resources or other circumstances within the prescribed ten days of such a change. Certain instances of client error may be fraudulent and should be referred to BSI. An overpayment may also occur because the applicant or client knowingly misrepresents or withholds information from the Department. If there is a reasonable possibility that fraud occurred in an overpayment of benefits, the case should be referred to BSI as provided in 106 CMR 706.240.