P&P August 2016

the NAC. The consortium selected LexisNexis Risk Solutions to build a system that could handle massive amounts of data on HHS recipients and share that information securely. A suc- cessful one-year pilot was completed in August 2015. The NAC platform is quite innova- tive. It utilizes advanced data linking technology and identity analytics to detect whether public assistance appli- cants are receiving multiple benefits within and across state lines. Using the LexisNexis Risk Solutions open- source high-performance computing cluster (HPCC Systems®) technology platform, it enables participating states to resolve the identities of applicants and recipients uniquely and accurately, in real time, to determine if they are already receiving or applying for benefits in another state. Until the NAC, state HHS agencies had to rely on a range of approaches to help detect fraudulent applica- tions and claims, including the Public Assistance Reporting Information System (PARIS). State HHS agencies are required to submit information on

all participants via this system, which only looks for a SSN data match to send results back to states for action. Without the advanced linking and identity resolution that the NAC provides, the PARIS matching process fails to utilize the majority of identity information contributed to provide a comprehensive match. The result: many missed matches, a high false-positive rate, and an extremely inefficient and labor-intensive process, which often result in a misdetection of dual participation. In addition, PARIS’ data are not timely. Reporting occurs quarterly and significantly lags the distribution of benefits, forcing agencies to resort to “pay-and-chase” recovery tactics. The “pay-and-chase” model presents a number of chal- lenges for states, beginning with resource needs and coupled with the reality that already distributed funds have a high unlikelihood of recoup- ment. In addition, the NAC states identified that a large number of their beneficiaries legitimately moved on a month-to-month basis, something that only the NAC’s real-time model could account for. For a state like Florida that utilizes an automated PARIS process, the NAC’s immediate identification of 3,000 dual participants that PARIS had missed, was revealing. The need for a real-time solution with advanced identity reso- lution is why states like Alabama and Georgia choose to join the project to create the NAC rather than implement a PARIS solution. It is also why so many states that are participating in PARIS are reaching out to learn about how they can join the NAC. The NAC, by comparison, uses not only a post-issuance benefit matching but also a “prevention approach” that strengthens program integrity by making any necessary fraud-miti- gating determinations at the point of application, before benefits are ever distributed. Due to the complexities of state eligibility systems, the NAC had to accommodate multiple ways for states to access its data. The NAC portal is a web interface, allowing participating states to search new applicants with a query-based model. System-to-system access to the NAC is also available through batch data

said Joel Savell, former state NAC coor- dinator at the Mississippi Department of Human Services. How the NAC Works The NAC is a state-to-state data- sharing program addressing SNAP and D-SNAP improper payments. It was designed to reduce dual participation and ensure that food resources only go to truly underprivileged beneficiaries, made up largely of children and elderly and disabled individuals, as well as those who need food assistance fol- lowing a disaster or lost income. The consortium of states initially set up the “Buddy State Exchange” system, allowing each state to compare data with certain other states, selec- tively. After experiencing challenges with large data volumes, manual pro- cesses, and lacking a comprehensive view of their identities by means of identity resolution, the Buddy State Exchange program evolved. With grant support from the U.S. Department of Agriculture’s (USDA) Food and Nutrition Service (FNS), what started as an exchange would become

From left to right: Chris Larson is the program manager of the National Accuracy Clearinghouse at the Mississippi Department of Human Services.

Reshma Khatkhate is a senior program administrator in the Division of Field Operations at the Mississippi Department of Human Services.

Tim Meeks is a senior project manager of the National Accuracy Clearinghouse at the Mississippi Department of Human Services.

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