For Reprint by the GWAAR Legal Services Team
Individuals who are liable for repaying FoodShare overpayments can contact their local Income Maintenance (IM) agency to request an overpayment claim compromise if they think that they will not be able to reimburse the full amount owed. This policy, which began being implemented in late February 2024, is anticipated to provide FoodShare members with an opportunity to minimize the burden of repaying overpayment claims when experiencing financial hardships.
Compromises must be requested in writing by using the Request to Lower a FoodShare Overpayment Form, F-03266, and returning it to the local IM agency, either by mail or hand-delivery. The requester’s current household income, assets, and expenses, along with any other liable person’s household information, will be reviewed to determine an amount that could reasonably be expected to be repaid toward the current claim balance over the next 36 months. The household information of the liable person that provides the greatest benefit to all liable individuals associated with a given claim will be used to determine the outcome.
If it is determined that the amount that can be repaid over 36 months is less than the total claim balance, then the overpayment will be reduced (i.e., compromised). The Wisconsin Department of Children and Families (DCF) “Write-Off and Adjustment Form” (DCF-F-140-E) will be sent to the DCF, Public Assistance Collection Section, and an approval notice will be sent notifying the liable individuals of the new payment amounts.
Overpayment claims may only be compromised once, unless the agency concludes that a significant change in the household’s circumstances will result in the liable individual not paying off the claim in the three-year period calculated for the original compromise determination. In addition, when claims have been compromised, they must be paid to a $0 balance before any future compromise requests can be considered.
Overpayments that are attributable to any of the following are not eligible for a compromise agreement:
• Intentional program violation (IPV)
• Trafficking
• Duplicate participation
• Fraud
If a requester disagrees on a compromised amount or if a compromise is denied, they can escalate a compromise determination with the IM agency. The agency will conduct an escalation review to determine if policy was followed, if the compromise was calculated correctly, and if proper notices were provided. The results of the review will be sent to the requester.
If the requester disagrees with the agency escalation review, the agency may escalate the case to the Wisconsin Department of Health Services (DHS). DHS will perform a review to validate that the correct policy and process were followed. If DHS agrees that the agency’s decision was correct, there will be no change in the decision. The DHS review is considered final and may not be escalated further. There are no fair hearing rights for compromise requests.
More information about the FoodShare Overpayment Compromise Policy and Process is available in DMS Operations Memo 24-03, Compromise FoodShare Overpayments, available at www.dhs.wisconsin.gov/dms/memos/ops/index.htm.
