Cochling: States can fix welfare fraud — here’s how some are doing it already

With massive welfare fraud uncovered in Minnesota (check out the Power Line Blog for the full, shocking story), states are wondering what might be going on in their states and what to do about it. My colleague at the Georgia Center for Opportunity, Eric Cochling, recently wrote in The Hill how some states are taking this head-on. Reducing the number of “door” people must walk through to obtain welfare benefits actually reduces the opportunity for fraud.

Utah passed a “One Door” reform that consolidates these programs, so that a recipient enters the system through a single point of entry. Instead of interacting with multiple programs, disparate offices, and various caseworkers — such as Medicaid for healthcare, SNAP for food support, and Workforce Innovation and Opportunity Act One Stop Career Centers for workforce training — struggling Americans would only need to go through one door to get the help they need, including a path to work.

<snip>

And at its core, One Door isn’t just about consolidating programs — it is about reorienting the entire system to be user-friendly and focused on work and opportunity. Instead of managing dependency, caseworkers’ primary focus is on helping recipients build skills, find jobs, and move toward self-reliance. It is a shift from a system designed around programs and bureaucracies to one designed around people.

Louisiana, Mississippi, and Arkansas are taking steps to adopt the One Door approach, starting with setting up a task force or study committee to audit what programs their state provides, who is enrolled, and whether workforce development and safety net programs are achieving their stated goals. 

Minnesota’s scandal revealed what happens when no one is paying attention. Some states, however, are making sure they know exactly what’s happening in their own systems.

Perhaps the fraud scandal in Minnesota will light a fire under state legislatures during their sessions this spring. They have an opportunity not only to criticize the fraud but also to reform the broken incentives that allowed it to fester. In doing so, they can also empower struggling Americans to lift themselves out of poverty and into a fulfilling, independent life.

Georgia should join these other states in setting up a One Door task force and auditing the various safety net programs.