To repeal section 630.460, RSMo 1994, relating to the department of mental health, and to enact in lieu thereof one new section relating to the same subject.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

Section A. Section 630.460, RSMo 1994, is repealed and one new section enacted in lieu thereof, to be known as section 630.460, to read as follows:

630.460. 1. For the purposes of this section, the term "overpayment" means any payment by the department to a vendor providing care, treatment, habilitation or rehabilitation services to clients under contract with the department, which is:

(1) In excess of the contracted rate less payments by the client or on his behalf as required to be made by the standard means test contained in department rules;

(2) In payment of services not provided;

(3) In payment for any service not authorized in the contract with the department; or

(4) In payment for services provided contrary to the provisions of the contract with the department.

2. [If a residential facility, day program or specialized service funded by the department receives any overpayment, it shall reimburse the department for the overpayment within forty-five days after the payment is discovered or reasonably should have been discovered.] Upon determination that an overpayment has been made, the department shall notify the vendor in writing of the amount of the overpayment and request reimbursement. Within fifteen days of receipt of the notice of overpayment, a provider may request a review of the overpayment and reimbursement request by the department director or his designee. The department director or his designee shall review the overpayment within fifteen days of the request for review.

3. [If the facility, program or service does not reimburse the department within forty-five days as set out in subsection 2 of this section, it shall repay any overpayment up to the amount paid by the department in accordance with such procedures as the department shall reasonably require, together with interest at the rate of one and five-tenths percent per month from the day the overpayment was discovered or reasonably should have been discovered. No interest shall be required if the excess amount is repaid within forty-five days of the day the overpayment was discovered or reasonably should have been discovered.] If any overpayment is not fully repaid within forty-five days of the date of notice of overpayment, the department shall assess interest on the unpaid balance. Interest shall be charged on any unpaid balance beginning from the date of notice of overpayment and shall accrue at a rate not to exceed the annual rate established pursuant to the provisions of section 32.065, RSMo, plus five percentage points.

4. The department may establish a repayment plan with the vendor to recover the overpayment plus accrued interest over a period determined by the department, but not to exceed twelve months. The department shall determine the method of repayment which may include direct payment by the vendor, deduction from future amounts due to the vendor from the department, or both.

5. If any overpayment plus accrued interest not subject to a repayment plan pursuant to subsection 4 of this section is not fully repaid within six months of the date of notice of overpayment, the department may certify the amount due to the department of revenue, the office of the attorney general, or take other appropriate collection actions. If any portion of an overpayment plus accrued interest which is subject to a repayment plan pursuant to subsection 4 of this section, but which is not repaid pursuant to the terms of the plan, the department may certify all or a portion of the overpayment plus accrued interest due to the department of revenue, the office of the attorney general, or take other appropriate collection actions.