Section 375.339 - What happens if a participant is overpaid?(a) If a participant is overpaid, the contractor must make every reasonable effort to arrange repayment. Contractors must arrange a repayment plan with the participant. The repayment plan may not require a payment of more than 10% of the total overpayment amount during any month. A contractor may not require a repayment be made during a month that would result in undue financial hardship. Repayments by participants continuing on the program may be made through a deduction in benefits.(b) What are reasonable efforts? Reasonable efforts must include notifying the participant of the amount of overpayment, the reason for the overpayment, and that repayment is required.(c) What are the exceptions? (1) Contractors do not have to attempt arranging repayment if the participant is no longer receiving benefits and the overpayment amount is less than $35.(2) Contractors do not have to arrange repayment if the participant is no longer receiving benefits and the overpayment is greater than $35 if: (A) every reasonable effort has been made to arrange repayment and(B) it is no longer cost-effective to continue overpayment recovery efforts.(3) If the overpayment is the result of nondisclosure of information or fraud, the contractor must make every effort to recover the overpayment, regardless of the amount. Repayment arrangements under this condition are not subject to the 10% maximum monthly repayment ceiling; however, repayment arrangements must not result in undue financial hardship.1 Tex. Admin. Code § 375.339
The provisions of this §375.339 adopted to be effective July 18, 2002, 27 TexReg 6326; transferred effective October 1, 2003, as published in the Texas Register July 2, 2004, 29 TexReg 6359