Summary

The following is a summary of the main concepts covered in this guide:

• Deductions are amounts of money that are deducted from a participant's benefit payment and used for another purpose. There are three categories of deductions: applied, un-applied, and third party.
• Deduction types are set up as part of system administration and associated with products. These deduction types are used to create customized deductions on a person's case within the Case Manager.
• Deductions created on a person's case must be activated before they can be processed.
• Deductions are processed when they are activated on the system. Processed deductions result in a participant receiving a reduced benefit payment. A user can simulate a payment from a specific date to view all deductions due on a payment prior to the payment being issued.
• Deduction information is maintained for third party payments. If a participant account is closed, and the participant is in receipt of payments from third party deductions, a workflow event is raised which notifies the user to end the deductions. Third party payments can also be canceled and regenerated.