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Effective: December 1, 2006 |
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20.10.05ar1 - Overpayment Withholding (Archive) |
Archived: March 1, 2009 |
When income is being reduced to recover a prior overpayment, it may affect the income availability determination for MA and GAMC.
Note: These provisions do not apply to MinnesotaCare.
Overpayment Withholding - Method A
Overpayment Withholding - Method B
Overpayment Withholding - Method A
Count income withheld to repay a debt or obligation.
Example:
Penny has $50 per week withheld from her paycheck due to a court-ordered garnishment for an unpaid credit debt.
Action:
Consider the $50 as available income. Do not deduct it from her gross wages.
Do not count income withheld to recover a prior overpayment from the same income source.
Example:
Roger is entitled to a VA payment of $400 per month. $150 is withheld to repay a prior VA overpayment.
Action:
Count $250 per month as available income.
Overpayment Withholding - Method B
Count income withheld to repay a debt or obligation.
Do not count income withheld if both of the following conditions are met:
l The income is being reduced to recover a prior overpayment.
l The overpaid amount had been previously counted as unearned income for MA or GAMC eligibility.
Example:
Larry has received MA for two years. He reports that his $300 per month VA check has been reduced by $100 to recover an overpayment incurred one year ago while he was receiving MA.
Action:
Do not count the $100 recoupment as available income until the overpayment is paid.
Example:
Mildred applies for MA for the first time. Her RSDI benefit of $500 has been reduced by $30 to repay a prior overpayment.
Action:
Count the full $500 RSDI benefit as available because the overpayment occurred before Mildred received MA.