Recovery of Funds

Recovery of Funds Per Rule 9.10, the responsible party may be allowed to continue to participate in the program while paying the improper payment back, unless the responsible party was suspended or terminated from the CCPP. A. Recoupment: MDHS may collect payment for AE, UPV and IPV by recoupment, which is a reduction in CCPP payment amounts to the child care provider in subsequent months. In the event the improper payment was due to the action of the parent, the recoupment amount will be added to the parent co-payment amount and is to be paid directly to the provider by the parent. 1) The recoupment amount will be set at a percentage of the total amount of the improper payment establishing twelve (12) equal deductions to be withheld from CCPP payments within a twelve (12) month period. MDHS reserves the right to extend the payment period under extreme circumstances. 2) Any party subject to recoupment of funds will be notified by email of the recoupment terms and the procedure for negotiating alternate recoupment terms. The party may elect to discharge the debt in less than one year, by increasing the amount withheld, or to request a lower payment if the party can demonstrate that the payment would cause an undue financial burden. The nature and circumstances that caused the improper payment may be taken into consideration by MDHS in determining whether to allow a decreased recoupment amount. B. Repayment Agreement: If the child care provider or parent no longer participates in the CCPP, or if MDHS is unable to recoup payments for any reason, MDHS may enter into a repayment agreement with the provider or parent.