Case reassessment reevaluates payments or bills when there is change in circumstance recorded on the case. Case reassessment can result in over and underpayments being created on the case. For example, if John Smith is originally paid $50, but a change in evidence makes him eligible for $40, John Smith is sent a bill for $10 to rectify the overpayment.
An overpayment occurs when too much has been paid out on the case. An underpayment occurs when too little has been paid out on the case. If an over or underpayment is detected during case reassessment, based on administration configuration, either an over or underpayment case or an payment correction case is automatically created.
Payments and bills created to rectify over and underpayments are automatically issued to the nominee who received the original payment amount. An alternative nominee can be assigned to receive the underpayment; however unlike regular benefit cases, the payment cannot be split between multiple nominees over different period of times because an underpayment is a single once-off payment. In order for a different nominee to receive the underpayment, the date range of the case component assignment to the alternate nominee must cover the entire cover period of the benefit underpayment component. If the date range of the case component assignment does not cover the entire cover period, then the original nominee will still receive the entire underpayment.