““Painless” Administrative Ways for
States with Budget Shortfalls to
Preserve or  Increase Medicaid and
S-CHIP Program Funding

H: Setting Up Automatic, Electronic Combined Application
|Programs (CAPs) for Integrated, Automated, Paperless,
”One-Stop-Shopping” SSI and Food Stamp Eligibility Can
Save States Millions in Food Stamp Administrative Costs

Thomas P. McCormack 
05/07/04

 


"Painless " TOC Medicaid Main Page  

States get a 50% match from the Agriculture Department for administrative and
eligibility determination  costs for food stamps—even though food stamps themselves
are 100% federally-funded. Until recently, to get food stamps, aged and disabled SSI
applicants and recipients had to file burdensome separate applications for food stamps
at welfare offices---something few have the energy or resources to do, particularly
after undergoing the exhaustive, traumatic SSI application gauntlet. So only about
half of disabled SSI recipients get food stamps and  even fewer aged ones do. 
Yet states bear half the multi-million dollar costs of operating their own food stamp
eligibility bureaucracies ---which largely and unnecessarily duplicate the eligibility
processing work done anyway by SSA for SSI applicants and recipients. 

In recent years, the Agriculture Department and the Social Security Administration
have developed Combined Application Programs (CAPs) to merge, or at least better
coordinate, SSI and food stamp eligibility processing, aiming toward the ideal of “one
stop shopping”. The very best version of these CAPs---which now operate in MS, NY,
SC, TX and VA; which will start shortly in FL, MA and PA; and which are being planned
in Al, AZ, AR, CT, ID, IL, KS, KY, LA, MD, NJ, NC, OK, SD, UT and WI---allow  both
new SSI applicants and ongoing SSI recipients to be automatically processed for, and
receive, food stamps based on their SSI eligibility processing, without the need to apply
separately at welfare office oreven complete even short, supplementary mailed-in
applications. 

Most of these state CAPS, however, fall short of the very best in streamlining; only South
Carolina, inmost aspects, and New York, in others, offer the most in speeding reforms
and cost-savings with advanced electronic systems that most fully displace cumbersome
and expensive in-person, paper application processing at welfare offices. For details on
CAPs, see the report on Supplemental Security Income/Food Stamp Combined
Application Projects
at
www.frac.org .

States which set up more advanced, streamlined, comprehensive, electronically-
sophisticated SSI/food stamps CAPs can thereby avoid almost all the administrative
and eligibility determination costs for food stamps for aged and disabled SSI recipients.
(Even a small state like South Carolina, when just beginning its fairly advanced,
comprehensive electronically-sophisticated CAP, saved over half a million dollars a
year in state administrative eligibility costs.) Since almost all of states’ remaining,
non-SSI-related food stamp eligibility costs are for those on TANF (“welfare”,
formerly known as AFDC), for whom states piggy-back food stamp costs o welfare
eligibility costs anyway, states could thereby eliminate much of their administrative
food stamp eligibility expenses. See the discussion immediately below for how this
reform can add significantly to state sales tax revenue. For more on effective state
efforts to promote access to food stamps to the working poor, see the General
Accounting Office report, Food Stamp Program: Steps Have Been Taken to Increase
Participation of Working Families, but Better Tracking of Efforts Is Needed
. GAO-04-346,
March 5, 2004 at 
http://www.gao.gov/cgi-bin/getrpt?GAO-04-346
\

Section I: Liberalizing Food Stamps for the Aged, Disabled and Families at No State Cost
By Advocating for Higher State-set Standard Utility Allowances That Fully Reflect Current,
Increased Utility Costs---Which Can Also Raise State Sales Tax Revenue


"Painless " TOC Medicaid Main Page  

“Painless” Administrative Ways For States With Budget Shortfalls to Preserve or
 Increase Medicaid and S-CHIP Program Funding
Section H
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