New automated voucher system expedites payment to Arkansas day care centers

Telemarketing & Call Center Solutions, Apr 1997 by Bruce Todd

Public assistance may be a loaded topic in the charged political environment of the late-1990s, but the political cacophony has done little to ease the operational and economic challenges state governments face administering welfare programs. Regardless of the ultimate outcome of the debate, one truth prevails: state governments are increasingly challenged to find more efficient, cost-effective ways to oversee public programs.

The State of Arkansas has taken a major step in this direction. In a move to help welfare recipients who have children break free of the vicious cycle of employment versus day care, the federal government provides a subsidized Day Care Voucher system that is administered at the state level. Arkansas has implemented a first-of-its-kind voice messaging application that substantially reduces the amount of time state employees spend managing this program. Better yet, by decreasing state payment time from more than six weeks to five to seven days, the application has made smaller day care centers (those responsible for 20 children or less) much more responsive to caring for children whose parents receive assistance. Perhaps most impressive, the application is improving the effectiveness of an innovative program designed to halt the welfare dependence cycle.

Cutting Payment Time Essential

Clearly, one of the challenges of successfully implementing the Day Care Voucher program is getting welfare recipients to actively participate. Just as important is the active participation of day care providers. As it turned out, however, many providers were reticent to participate because of the state's lengthy payment schedule, according to Bobbie Ferguson, manager of the Day Care Eligibility Unit, Department of Human Services, State of Arkansas.

Regardless of their size or the number of children in their care, day care providers were required to fill out a paper billing payment form once a month after services were provided. The form would be mailed to the state, keyed into a computer system by a state employee, sent through an approval and processing procedure and roughly six weeks later, the day care provider would receive a check for services rendered. Both small and large day care providers complained about the complexity and inefficiency of the process.

Arkansas took a twopronged approach to the challenge. For larger providers -- those caring for 20 or more children - the state developed an online application which allows providers to file electronically via computer and modem.

"Our Human Services Department determined that many smaller providers work from their homes and do not use computers to run their business," explained Ferguson. "Accordingly, we needed to devise an automated application that would give smaller providers all the benefits and features of the computer-based application but that wouldn't require access to a computer."

Voice Processing Solution Given the ubiquity of the telephone, the Arkansas development team turned to voice messaging. The state had already implemented a successful State Income Tax information application using voice messaging technology and the Day Care Voucher application seemed like a natural fit. With the help of the voice messaging system manufacturer and a value-added reseller, Arkansas devised an integrated voice response (IVR) system that enables day care providers, serving 20 children or fewer, to not only easily file for payment, but also to receive payment much more quickly.

Now, day care providers call a special access number biweekly to file for payment. They respond to a series of voice prompts by using their telephone keypad to enter such information as their center's tax identification number, the personal identification number for authorization of children covered by the program, and the number of days of service provided to each child during the billing period. The automated application now enables providers to receive payment in just five to seven days and has freed up state employees, who previously had to enter the information from the paper-based forms into the state's online system.

"The Day Care Voucher application has been tremendously successful for Arkansas," said Barbara Marsac, assistant director, Division of Administrative Services, Department of Human Services, Arkansas. The Arkansas Department of Human Services was the first to automate this process and also is serving as a model for other states considering automation options.

More than 1,000 small providers statewide now use the system to file for payment and, according to Marsac, user feedback has been overwhelmingly positive. Providers can file any time, any day - a key benefit to small business owners who spend most of the work day ministering to the needs of small children.

The success of Arkansas' first two voice messaging applications has prompted the state to automate a variety of other applications. Two of the most innovative applications are:

o A nursing assistant certification line that enables people responsible for hiring assistants at nursing homes to check for certification and abuse history of potential employees via an IVR application;