MDHHS outlines plan to cut Michigan SNAP payment errors after federal changes

LANSING — The Michigan Department of Health and Human Services on Monday told a state House oversight committee that it is stepping up efforts to reduce the state’s Supplemental Nutrition Assistance Program payment error rate after federal changes tied to HR 1 increased the stakes for mistakes.

David Knesick, chief operating officer at MDHHS, told the Oversight Committee on State and Local Public Assistance Programs that Michigan paid out about $3.2 billion in SNAP benefits in fiscal 2024 and that the program’s federal payment‑error calculation combines overpayments and underpayments. "The payment error rate is not a measure of fraud," Knesick said, distinguishing QC findings from OIG fraud investigations.

Knesick said a five‑week diagnostic identified a small set of root causes that account for most errors: earned income reporting, household composition, deductions (mortgage, taxes, insurance) and unearned income. He gave examples in which a dependent’s age or a late‑reported job changed benefit calculations, and he described how double‑counted mortgage escrow amounts and unreported monthly payments…