ADHS WIC Electronic Benefit Transfer Project Sheila Sjolander

ADHS WIC Electronic Benefit Transfer Project Sheila Sjolander – Assistant Director Public Health Prevention Services Paula Mattingly – Assistant Director / CIO Cindy Smith – Assistant Director / CFO Health and Wellness for all Arizonans

Overview • What is WIC? • What does WIC provide? • Who provides services to the participants? • What food benefits do participants receive? Health and Wellness for all Arizonans

Business Problem • Participants must purchase all food items on the food voucher or forego the benefit • Participants cannot replace lost or stolen food vouchers • WIC transaction creates a stigma that discourages use of food vouchers • Inefficient transaction process • Vendors are liable for returned check fees • MICR check printer maintenance and repairs are costly and impact participant services • The program receives limited data which limits cost containment and fraud detection and prevention • Federal mandate to implement WIC EBT by October 2020 Health and Wellness for all Arizonans

Business Solution • Selected online WIC EBT technology with magnetic stripe card • Online WIC EBT—food benefits stored in database vs. on card • Procure a WIC EBT Contractor to implement a WIC EBT system and provide online WIC EBT transaction processing services • Procure a Quality Assurance Contractor Health and Wellness for all Arizonans

Design, Development & Testing • Health and Nutrition Delivery System (HANDS) – Design, Development & Testing – Create interface to WIC EBT system – User Acceptance Test • WIC EBT System – Implement FNS certified system – Configure test environments for HANDS and Vendor systems testing – HANDS, WIC EBT system, and vendor stand-beside solution systems integration testing • Vendor Development – Integrated vendors will modify and test their cash register systems – Non-integrated vendors will receive Arizona WIC provided standbeside solution Health and Wellness for all Arizonans

Preparation Activities • Local Agencies – Procure hardware and materials to support WIC EBT card issuance • Build UPC Database of WIC approved food items • Training – Create an approach and materials to meet all stakeholder needs (State WIC personnel, Local Agencies, Vendors, Participants) • Support – WIC Service Desk – WIC EBT Contractor Participant and Vendor Customer Service Center (24 x 7 x 365) Health and Wellness for all Arizonans

Implementation • Pilot WIC EBT in Casa Grande – Approximately 2, 500 participants – Mix of national, regional, and local grocery store chains, and independent stores – Self contained community where approximately 95% of food voucher redemptions stay within the pilot area • Statewide Rollout – Incremental rollout by Local Agency – Rollout evaluation criteria Health and Wellness for all Arizonans

Project Milestones Major Milestones Start Date Finish Date HANDS Joint Application Design (JAD) Sessions January 2016 April 2016 ITAC Approval February 2016 March 2016 Project Kickoff Meeting April 2016 Integrated Vendor Certifications April 2016 July 2017 WIC EBT System JAD Sessions April 2016 May 2016 October 2016 November 2016 December 2016 Systems Integration Testing January 2017 Pilot March 2017 July 2017 December 2017 USDA Contracts Approval HANDS Development Complete HANDS UAT Statewide Rollout Health and Wellness for all Arizonans

FINANCIALS 100% Federally Funded: $9. 5 M - $10. 2 M q. Operation Costs (5 Years): $3. 4 M q DEVELOPMENT COSTS $6. 1 M - $6. 8 M Health and Wellness for all Arizonans

DEVELOPMENT COSTS TOTAL: $6. 1 M - $6. 8 M Other $357, 000 Professional & Outside Services $5. 4 M - $6. 1 M Hardware $228, 000 Software $48, 000 Licensing & Maintenance $11, 000 Health and Wellness for all Arizonans

OPERATION COSTS (5 YEARS) TOTAL: $3. 4 M Other Professional & Outside Services $460, 000 $2. 8 M Hardware $66, 000 Licensing & Maintenance $38, 000 Health and Wellness for all Arizonans

Risks and Mitigation Strategies • Delays to HANDS, WIC EBT system, or vendor’s cash register system development will delay the entire project Ø HANDS DD&I Contractor hiring personnel with WIC EBT experience Ø Utilize best practices and lessons learned Ø Strong communication with vendors • WIC EBT Contractor quality may decline due to volume of WIC EBT implementations (70+ WIC state agencies by 2020) Ø Documented all current and future SNAP and WIC EBT contracts in or pending implementation phase Ø Documented the estimated personnel allocation for project Ø RFP deliverable acceptance criteria Health and Wellness for all Arizonans

Questions Health and Wellness for all Arizonans