Social Security, Medicaid, Medicare, Aid to Dependent Children, and care to disabled veterans are some of the major Federal benefits programs. Can governments deliver these benefits more quickly and efficiently while maintaining the accountability and security of the programs and the dignity of the recipients?
Each year some $500 billion in cash payments and food assistance are provided to needy Americans. Most of these entitlements are delivered by checks or vouchers -- paper and postage -- while some are directly deposited electronically into bank accounts -- no paper, no postage. But, many recipients of this form of assistance do not have bank accounts. In these instances, how can we take advantage of emerging technologies, avoid paper and postage and thus save time and money? An answer may be electronic transfer of benefits to a credit card-like benefits card. This is actually being done in several states right now.
Systems using bank-like automated teller machines and retail point-of-sale terminals (scanners already installed in many grocery stores) are undergoing testing in six states (Iowa, Minnesota, New Jersey, New Mexico, Ohio, and Pennsylvania) and are planned in thirty-one more. This year Texas goes on-line with the nation's largest electronic benefit transfer (EBT) system. Elsewhere, eight other southern states are joining forces to create the first regional system and every month since 1993, Maryland's "Independence Card" program has delivered some $57 million in food stamps, welfare and child-support benefits to 170,000 households statewide. No paper, no postage, and no lost or stolen checks.
Of course, entitlement programs are not the only types of government benefits. Also included are small business loans and grants for educational projects and agricultural research. For example, notices of National Science Foundation grants are available on-line. They may be downloaded and printed by the applicant at his or her ease. When an application is completed, it may be submitted to the National Science Foundation by electronic mail. The whole process has been made more efficient and user-friendly which ends up saving the tax payers' money.
Questions regarding benefits: