Brief Description: Modifying the interest accrual methodology for vendor overpayments.

Sponsors: Senate Committee on Ways & Means (originally sponsored by Senator Keiser).

Senate Committee on Ways & Means
House Committee on Appropriations

Background: The Department of Social and Health Services (DSHS) regularly conducts audits of overpayment by vendors to ensure compliance with state and federal regulations. Vendors must repay the amounts overpaid with interest. Current law allows for two methods of calculating interest accrual: 30 days after the date of notice by DSHS to the vendor; or 90 days after the date of overpayment to the vendor. The latter overpayment methodology is currently used in two divisions of DSHS: Health and Recovery Services Administration; and Aging and Disability Services Administration.

Summary: The interest accrual methodology based on 90 days from date of overpayment is removed, so that DSHS must use the 30-day after date of notice methodology to calculate the accrual of interest on vendor overpayments.

Votes on Final Passage:

Senate      48   0
House      96   0

Effective: June 12, 2008