Senate Bill 5079 waives overpayment collection for older adults and disabled individuals

March 14, 2025 | Human Services, Youth, & Early Learning, House of Representatives, Legislative Sessions, Washington


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Senate Bill 5079 waives overpayment collection for older adults and disabled individuals
The House Early Learning & Human Services Committee convened at 8:00 AM on March 14, 2025, to discuss key legislative matters, including Senate Bill 5,079, which addresses the issue of unintentional overpayments affecting older adults and individuals with disabilities served by the Department of Social and Health Services (DSHS).

The meeting began with Senator Mazal proposing a shift from the public work session to focus on Senate Bill 5,079. O'Meara Harrington, staff to the committee, provided an overview of the bill, which aims to alleviate the burden of overpayment collections on vulnerable populations. This legislation is a companion to House Bill 1243, which had previously passed through the committee.

Harrington explained that the DSHS administers various assistance programs, including the Age Blind or Disabled (ABD) Program, which offers cash assistance to low-income adults aged 65 and older, as well as those who are blind or likely to qualify for federal supplemental security income. The DSHS also oversees long-term care supports and developmental disability services.

Currently, DSHS has established processes for recovering overpayments, typically through reductions in future assistance payments or billing for long-term care services. However, federal regulations complicate the collection of overpayments, requiring states to remit the federal portion to the Centers for Medicare & Medicaid Services (CMS). Notably, DSHS cannot collect overpayments after six years from the notice date.

Under the proposed Senate Bill 5,079, starting July 1, 2025, DSHS will be authorized to waive all collection efforts for overpayments related to the ABD program and for functionally disabled adults receiving long-term support and developmental disability services. The bill mandates DSHS to create rules outlining the specific circumstances under which collection efforts will be waived.

The meeting concluded with an invitation for questions from committee members, indicating ongoing engagement with the bill's implications for the affected populations. The committee's discussions reflect a commitment to addressing the financial challenges faced by older adults and individuals with disabilities in Washington State.

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