LDH seeks flexibility in SNAP performance-pay pilot; commission approves amendment

The Louisiana State Civil Service Commission on April 1 approved an amendment to a SNAP performance-pay incentive after a lengthy presentation from Camille Conaway, who leads the Louisiana Department of Health’s Office of Economic Independence.

Conaway described a series of operational changes launched in January to reduce SNAP payment error rates, including a 30-person case-review team that examines complex earned-income cases before authorization, a wage-verification tool partnership with Equifax, in-person trainings for analysts statewide, and hiring plans to add about 30 analysts. She said those steps are intended to catch and correct errors before cases reach the federal quality-control sample.

Conaway told commissioners that federal thresholds expose the state to major fiscal risk: if a state-level error rate exceeds 6%, the federal share could fall and the state would be responsible for 5% of benefits (she provided an estimate of about $95 million for that scenario); if the rate exceeds 8%, the state’s share could rise to 10% (about $190 million), according to her presentation. She said the official federal error-rate determination lags and will not be published until the summer, and argued the pilot needs flexibility to maintain morale.

The incentive approved in January set a 4% error-rate target for analysts (adjusting automatically to 5% in the second quarter). Conaway told the commission that, given the complexity of earned-income cases and the scale-up of new processes, an unattainable 4% threshold would risk demoralizing staff. She asked for authority to reward the top 10% of performers in a quarter if too few analysts reach the numeric target; commissioners discussed the balance between timeliness and accuracy and whether incentive funds are covered by federal administrative cost-sharing.

Commissioners pressed Conaway on whether incentive pay would be covered by federal funds; Conaway said the incentive is paid from the administrative cost share (50% state, 50% federal) and noted recent state budget adjustments to reflect shifting federal shares. Commissioners also asked about timeliness safeguards; Conaway said there is no federal financial penalty for being untimely, but USDA/FNS requires corrective action plans for timeliness problems.

After discussion, the commission approved the amendment to the incentive-pay policy effective Jan. 1, 2026 through Sept. 30, 2026, and commissioners expressed support for the department’s efforts.

What’s next: LDH will continue implementing the case-review process, track program metrics, and report outcomes. The federal error-rate for the fiscal year will be published later and could affect the state budget if thresholds are exceeded.