The California Department of Social Services has issued guidance regarding its compromise policy for households with elderly and/or disabled members. Counties will compromise Administrative Error (AE) and Inadvertent Household Error (IHE) overissuances for active and inactive households that include at least one elderly and/or disabled household member. AE and IHE claims for active and inactive households consisting solely of members who are elderly and/or disabled at the time of discovery of the claim will be reduced by 100 percent. AE and IHE claims for active and inactive households that include at least one elderly and/or disabled household member and only an elderly and/or disabled household member is responsible for the claim will be reduced by 100 percent. AE and IHE claims for active and inactive households that include at least one household member is elderly and/or disabled and one who is not and the non-elderly or disabled household member is responsible for the claim will be reduced by 50 percent.
The date of discovery is the date the county determined that an overissuance occurred.
For active and inactive cases, counties must use the most recently verified information to determine household composition at the time of discovery.
Household members who become elderly and/or disabled during collection of an overissuance are eligible for reduction. The household must inform the county and verify their elderly and/or disabled status verified by the county to have their remaining overissuance claim reduced.
Counties are only required to inform households of a reduction if the household’s claim is reduced by 100 percent on an already established claim. No notice is required if a household’s overissuance is reduced by 100 percent prior to establishment of the claim. Counties must give notice to households of a 50 percent compromise and of the remaining overissuance balance.
The new policy does not affect claims already in collection. However, households can request a reduction if they become elderly or disabled after the new policy is in effect.
This compromise policy does not apply to overissuances incurred while waiting for a unsuccessful hearing decision.
This policy is anticipated to become effective in Fall, 2022. CDSS will issue final guidance when the implementation date is determined. (ACL 21-118, September 30, 2021.)
UPDATE: Automation of the overissuance compromise policy and revised Notices of Action is expected to be completed by May 1, 2023, which is the final date that the policy can become effective. (ACL 22-61, July 22, 2022.)
UPDATE: Automation of the overissuance compromise policy and revised Notices of Action is expected to be completed by September 1, 2023. (ACL 22-61E, April 11, 2023.)