MedicaidReimbursementMedium impact
23-1176 Recoupment of Overpayment Through Offset
Health Net·CA·Reimbursement
We identified it
Jun 20, 2026
Summary
CCHCS/CDCR can now recover overpayments by offsetting (withholding) amounts from future payments to providers. Providers will receive 30 days written notice before recovery begins, and can request payment plans up to 6 months if facing financial hardship.
Action Required
Immediately: Billing team should monitor all CCHCS/CDCR payments for potential offsets and establish procedure for handling overpayment notices. Designate staff to review any offset notices within 30 days and determine if appeals should be filed under contract Dispute Resolution process. Create protocol for requesting payment plans if offsets would cause financial hardship.