Overpayments, Collections, and Psychiatric Hospital Reimbursement Division - 491-0212-24
Description of Agency
The mission of the Overpayments, Collections, and Psychiatric Hospital Reimbursement Division is to develop, maintain, and improve upon, when possible, the most efficient, effective, and highest quality collection processes for the Michigan Department of Health and Human Services (MDHHS). As of July 2024, the Division had 70 employees within three organizational sections. The Overpayment Establishment Section examines referrals of suspected overpayments to clients, primarily related to food and cash assistance programs, to determine whether MDHHS should proceed with recoupment action against the client. The Collections and Reconciliation Section receives overpayment referrals from various other program areas within MDHHS, including adoption subsidy, foster care, Medicaid, and both hospital and long-term care facility quality assurance tax assessments, and pursues collection by sending out notices to the debtor, responding to inquiries from the debtor, and coordinating payment plans. The State Psychiatric Hospital Reimbursement Section pursues payment amounts owed for services rendered to patients by the five State-managed hospitals. Generally, after six months of collection efforts by MDHHS, debts are transferred to the Michigan Department of Treasury for further collection efforts. As of July 2024, the Division indicated it was responsible for pursuing approximately $196 million owed to the State.
Audit Objectives
- To assess the effectiveness of the Overpayment Establishment Section’s efforts to process overpayment referrals.
- To assess the sufficiency of the Collections and Reconciliation Section’s efforts to pursue collection of debts.
- To assess the sufficiency of MDHHS’s efforts to pursue collection of debts owed to the State psychiatric hospitals.
Timing
Estimated Release Date: Mid 2026
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