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SB 5079

Addressing the burden of unintentional overpayments on older adults and adults with disabilities served by the department of social and health services.

2025-2026 Regular Session Introduced by Leonard Christian and 6 co-sponsors

DSHS may waive all collection efforts for unintentional overpayments in ABD cash assistance and ALTSA/DDA long-term services, reducing hardship for low-income seniors and disabled.

Effective date 7/1/2025.
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Bill Summary · SB 5079

Summary — SB 5079 (Chapter 331, Laws of 2025)

Status: Enacted (Governor signed 5/17/2025). Effective date: July 1, 2025 (emergency clause).
Primary sponsor: Sen. Ron Muzzall; by request of Department of Social and Health Services (DSHS). Amended in the House to specify “unintentional” overpayments.

Purpose / Intent

To reduce the financial and administrative burden that recovery of small, unintentional benefit overpayments places on older adults and adults with disabilities served by DSHS by giving the agency discretionary authority to waive collection efforts in specific programs.

Key provisions

  • Amends RCW 43.20B.030 to add a new discretionary waiver authority for DSHS.
  • Beginning July 1, 2025, DSHS may waive all efforts to collect unintentional overpayments:
    • Under the Aged, Blind, or Disabled (ABD) cash assistance program (RCW 74.62.030); and
    • From functionally disabled clients receiving services and supports under chapters 74.39, 74.39A, and 71A.12 (ALTSA and DDA long‑term services and developmental disabilities programs, including Community First Choice and waiver services).
  • The waiver authority is discretionary (DSHS “may” waive) and applies only to unintentional overpayments (agency-caused or non‑willful client errors).
  • DSHS must adopt rules specifying the circumstances under which it will waive collection efforts.
  • Existing provisions allowing offers of compromise, write‑offs when not cost‑effective, and equitable‑estoppel waivers remain in statute.
  • The bill does not appropriate funds. A fiscal note was prepared.

Who is affected

  • Recipients of ABD cash assistance (older adults, blind adults, and adults likely to meet SSI criteria).
  • Functionally disabled adults receiving long‑term services and supports administered by ALTSA and DDA (including those on Medicaid State Plan Community First Choice or waiver programs).
  • DSHS administration (will develop rules and implement waiver processes).
  • Potentially: federal Medicaid accounting — federal rules require states to remit the federal share of Medicaid overpayments to CMS; DSHS will need to address any federal reporting/repayment implications when waiving collection of Medicaid‑funded overpayments.

Implementation & timeline

  • DSHS rulemaking is required to define waiver circumstances and procedures.
  • Effective immediately for implementation purposes due to an emergency clause: July 1, 2025.
  • Legislative history: Prefiled 12/19/2024; public hearings and committee amendments in early 2025; passed both chambers (Senate 49–0; House 93–2) and signed by the Governor on 5/17/2025.

Expected impact

  • Directly reduces the risk that small recovery actions will further harm individuals with very limited incomes (testimony cited ~73 people monthly, ~1% of caseload; average ABD benefit cited ≈ $13/day).
  • May lower administrative costs associated with pursuing low‑value overpayments.
  • Requires DSHS to balance consumer protection with federal Medicaid obligations and fiscal stewardship when defining waiver criteria.

Compiled from official sources — confirm details with the bill’s official record.

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