| TO: | ALL COUNTY OFFICES |
| FROM: | JANEL R. LUCK, DIRECTOR |
| SUBJECT: | REVISED DIVISION OF MEDICAL SERVICES PROCEDURES FOR RECOUPMENT OF INSUFFICIENT SPENDDOWN PAYMENTS |
DISCUSSION:
The Division of Medical Services (DMS) recently began a new procedure to recover money lost through insufficient funds checks received to pay a spenddown. Payments received after an insufficient check has posted will be applied to the insufficient month when the claimant has used Medicaid services in the month for which the insufficient payment was posted. The claimant will be required to send another payment for the invoiced month when the payment is applied to an insufficient month. Currently, DMS does not provide notification to the claimant when a payment is applied to an insufficient month.
DMS is sending notification of this procedure to the claimant when they notify him/her that the check was returned for insufficient funds. A copy of this notice 
is attached for informational purposes only; it will be sent by DMS when appropriate. When a payment is applied to an insufficient month, DMS will replace the INSUF with PAID on the MPNI screen. However, the Eligibility Specialist will not be aware of the change as it is not noted as a change on the MPNI screen.
Claimants with questions should be directed to contact the Premium Collections Unit at 1-877-888-2811.
NECESSARY ACTION:
- Review this memorandum with all appropriate staff.
- Provide the toll free Premium Collections Unit number to clients with questions regarding their spenddown premium payment.