States must align policy, funding, tech when designing benefits systems, new report says

A report published Thursday by the Digital Benefits Network recommends that states rethink how digital benefits systems are designed and governed, starting with better alignment between policy, funding and technology.

The report, which follows interviews with 24 leaders from seven states that either operate or are developing integrated eligibility and enrollment, or IEE, systems, identified several common challenges, including technological complexity, aging infrastructure and cross-agency coordination hurdles.

Rather than building systems program by program, the report encourages states to coordinate benefit laws across agencies, create legislative timelines with realistic development cycles and pursue more flexible federal and state funding models.

“Since many people qualify for several benefits programs, it is important that IEE systems are easy to use and accurately determine someone’s eligibility,” the report reads. “Well-designed IEE systems can also enable agencies to more efficiently enroll beneficiaries in programs by streamlining case management and beneficiary touchpoints.”

IEE systems allow applicants to apply for multiple benefit programs — such as the Supplemental Nutrition Assistance Program, Medicaid, Temporary Assistance for Needy Families and the Child Care Development Fund — through a single application. These systems digitize and interpret policy rules into online application portals, a challenging task that requires ongoing updates as laws and federal guidance change.

“Currently, governments enact and promote a tangle of intersecting laws, regulations, and policies related to these programs, which are communicated in lengthy and complex text documents distributed on disparate websites,” the report reads.

The report urges states to reduce long-term dependence on vendors by building stronger internal resources and using more strategic procurement practices, such as soliciting requests for information before issuing requests for proposals. It also highlights opportunities to improve data integration across benefit programs to reduce duplicate paperwork for applicants, while also maintaining strong privacy protections.

The report also urges states to cautiously explore automation and artificial intelligence tools, such as for document processing or quality assurance, with clear guardrails to ensure “that we’re not introducing an unintended outcome as a result of a change that we may think is simple.”