Overpayments to Service Providers (POL-28)

Chapter:
CLAIMS

Subject:
OVERPAYMENTS TO SERVICE PROVIDERS

Effective Date:
November 15, 1994

Last Updated On:
December 16, 2024

REFERENCE

Workers Compensation Act R.S.P.E.I. 1988, Cap. W‑7.1, Section 18 (4).

DEFINITION

In this policy:

“Overpayment” means the result of paying a worker, employer, or service provider, more than what they are entitled to pursuant to the Workers Compensation Act.

“Service provider” means a person or company that conducts business either with the Workers Compensation Board or on its behalf.

“Set-off” means the amount payable to a worker or service provider set aside, by the Workers Compensation Board, as payment against a debt owed to the Workers Compensation Board. 

POLICY

1. The Workers Compensation Board (WCB) will pay recognized service providers appropriate fees for their services, based on WCB approval or through formal agreements. 
2. If a provider is paid more than the approved amount for the service provided, an overpayment will be established.
3. The WCB will recover the overpayment from the service provider in one of these ways:
   
   1. The provider will be notified and asked to repay the amount.
   2. The WCB will use set-off to deduct the amount of the overpayment from subsequent amounts due to the provider.
   3. The provider and the WCB agree to a payment plan satisfactory to both parties.
4. If the overpayment is not made in a timely manner, the overpayment may be sent to a collection agency. Cost relief may be granted to the employer where the overpayment cannot be collected.
5. Overpayments to service providers will only be considered for debt write-off if ordered by the courts.

HISTORY

Board of Directors Approval Date: November 15, 1994