DSS warns HR 1 changes could raise county SNAP and Medicaid administrative costs
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Summary
Karen Tucker, division manager for economic services, told the board that HR 1 would reduce the federal administrative match for SNAP to 25 percent, potentially shifting a substantial share of administrative costs to state and county governments; the department outlined caseload and staffing figures and steps underway to reduce payment error rates.
Karen Tucker, division manager for economic services at the Department of Social Services, told the board that federal changes under HR 1 will materially affect county operations and staffing needs.
Tucker reported program caseloads and staffing: "In our adult Medicaid program, we serve on average 10,405 participants every month," she said, and noted family and children’s Medicaid caseloads (53,516) and Food and Nutrition Services (SNAP) average monthly participants (22,088), which she described as roughly 30% of the county. Tucker said the county issues approximately $3,500,000 in SNAP benefits each month.
Program changes and fiscal risk: Tucker said HR 1 will reduce the federal administrative match for SNAP to 25% beginning in fiscal 2027, meaning state and counties would cover the remaining 75% of administrative costs. She described North Carolina’s payment error rate at about 10.21% and Union County’s current payment error rate near 9%, noting that high error rates can trigger additional state and federal scrutiny and potential cost-sharing obligations. The state has asked the General Assembly for additional funds to offset the change.
Operational impacts: Tucker said staffing and process changes are under way—an economic services call center, an admin team reorganization and targeted re-training for staff—to reduce error rates and handle expected increases in workload. She also flagged two forthcoming burden increases that concern her team most: likely Medicaid work requirements and shorter eligibility certification windows (six-month recertifications rather than annual), which she said would double the county’s recertification workload for roughly 63,000 recipients.
Board members asked clarifying questions about the state audit selection process and timelines for remediation if error-rate thresholds are exceeded. Tucker said the state typically audits about two cases per county each month and that counties may have a two-year window to reduce error rates before steeper penalties apply; specific penalty amounts were not yet determined.
What’s next: Tucker requested two senior eligibility specialist positions for FNS in fiscal 2027 to help reduce error rates and indicated the county will continue focused training and client education to limit errors.
Sources: Presentation and Q&A with Karen Tucker, Division Manager for Economic Services, at the Feb. 9 Union County meeting. Direct quotes used when provided in the transcript.