23-1424 As of October 15, 2023 Recoupment of Overpayment Through Offset

Date: 12/15/23

Provider payments may be offset to recover an overpayment

As a reminder, in order to correct an overpayment, the California Correctional Health Care Services (CCHCS)/California Department of Corrections and Rehabilitation (CDCR) may offset any overpayment, incorrect payment or improper payment to a provider by withholding an amount from the next payment or several payments (as necessary) to recover the overpayment.  

When an overpayment to a provider is identified, the CCHCS/CDCR will:

• Issue a written notice to the provider when an overpayment is discovered. The notice will be issued at least 30 calendar days prior to seeking recovery. The notice will provide an explanation of the overpayment and the recovery process.   
• Not offset an overpayment if there is an appeal pending. The appeal must be filed under the Dispute and Resolution process, as set forth in the provider’s contract agreement.
• If recovery of the full amount at one time imposes a financial hardship on the provider, the CCHCS/CDCR, at its sole discretion, may grant a provider’s request to repay the recoverable amount in monthly installments over a period of consecutive months, not to exceed six (6) months. 

Additional information

If you have questions regarding the information contained in this update, contact the PHCPN Provider Services Center by email or by telephone at 877 899 0561.