Maximum Deduction Rate

The Maximum Deduction Rate setting is used to determine the maximum percentage of a benefit payment that can be deducted from the total payment amount. For example, if the maximum deduction rate is set to 50 for a benefit product, then the total amount of all deductions for a case based on that product cannot exceed 50% of the benefit payment amount. Deductions are processed in the order that they are recorded on the system; the first deduction that causes the deduction percentage to go over the maximum deduction rate for the case will prevent any future deductions from being processed.