461-195-0561    Effective 04/01/14
Compromise of an Overpayment Claim

This rule specifies when and how the Department may compromise an overpayment (see OAR 461-195-0501) claim.

1. The Department may consider a request to compromise an overpayment claim only if the estimated administration and collection costs necessary to collect the account in full likely exceed the current balance of the overpayment.

2. The following limitations apply to the compromise of an overpayment claim:
   1. The authority of the Department to compromise may be limited by federal or state law.

   2. The Department may compromise a claim only once it is a liquidated claim (see OAR 461-195-0551).

   3. The Department may compromise a claim only if the requester has made a good faith effort to repay the overpayment.

   4. The Department may not compromise:
      1. A fraud overpayment claim;

      2. Any overpayment claim, unless 36 months have passed since the requester initially was notified of the overpayment;

      3. An overpayment claim if the debtor has the ability to repay the overpayment in full within 36 months of the request date.

      4. An overpayment claim for less than 75 percent of the total amount of the claim.

      5. An overpayment claim if the debtor is a member, currently or in the previous 12 months, of a filing group or OCCS medical program household group (see OAR 410-200-0015) that received benefits under the program in which the overpayment occurred.

      6. A child care provider overpayment claim if the provider, currently or in the previous 12 months, received a direct provider payment for child care under division 165 of this chapter of rules.

3. The Department may allow a compromised claim to be paid in installments over a period not to exceed 90 days.

4. During the 12 months following the date of the compromise agreement, the Department reserves the right to collect the original unmitigated claim through benefit reduction under OAR 461-195-0551.

Stat. Auth.: ORS 409.050, 411.060, 411.404, 411.816, 412.014, 412.049, HB 2089 (2013, Section 10)
Stats. Implemented: ORS 409.010, 411.060, 411.404, 411.635, 411.816, 412.014, 412.049, 416.350

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