On a recent Saturday, my co-worker and I spent an unsuccessful five minutes trying to get a Healthy Incentives Program (HIP, a nutrition incentive program in Massachusetts) transaction to go through. We both work at a farmers market selling fruits and vegetables from a farm in upstate Massachusetts. The customer knew that she had $40 in HIP left (the full amount for the month, meaning she hadn’t spent any yet), but we couldn’t put the $34 transaction through, and each receipt for the cancelled transaction (we tried three times) didn’t show any HIP transaction at all.
After the third failed transaction, we found one of the owners of the farm, who also works at this farmers market. After looking at the receipt, he explained to us and to the customer that because she had less than $34 in SNAP left, a $34 transaction wouldn’t go through, even though she had $40 left in HIP. Instead, we needed to run multiple transactions for the amount she had left on SNAP ($16) or less until we reached the $34 mark. Even though she had enough on HIP to pay for everything she was buying, it had to be put through as multiple transactions.
The customer was extremely nice about my co-worker and me wasting probably 15 minutes of her time, but this did take time from her, from us, and from everyone else standing in line waiting to check out. This was not just because we could not figure out why the transaction was not going through (which really only held up my co-worker) but because we share one iPad which we use to do SNAP transactions. If multiple people are checking out with SNAP at the same time, we can only input SNAP information for one person at a time. Though the number of people using HIP at the farmers market should emphasize the advantages that nutrition incentive programs have in improving access to food and creating a market for small farmers, this weekend also demonstrated the potential technological challenges in creating a national nutrition incentive program.
The Healthy Incentives Program
HIP was originally a pilot nutrition incentive program funded by the Farm Bill and operates by giving SNAP recipients additional money to spend on healthy, local fruits and vegetables (FV) from HIP vendors. When consumers purchase FV using EBT, HIP instantly refunds the SNAP dollars spent to their EBT card. However, because HIP is technically refunding the SNAP amount, if a consumer’s SNAP balance is 0, they cannot use HIP, even if they have $40 left in HIP benefits. This also creates the situation that stumped me this weekend: if the consumer has $16 left in SNAP and $40 left in HIP, I cannot run a $32 HIP transaction, but I can run a $16 HIP transaction twice.
HIP processing significantly increases the technological requirement and administrative burden of running the program. The Department of Transitional Assistance (DTA) individually approves every single HIP-eligible vendor and enables every single terminal used to process HIP. There are only two types of devices that can process HIP: Conduent’s Direct Connect EBT-only landline terminal and Novo Dia Group’s TotilPay mobile app (what I use at work). In order to swipe EBT cards (as opposed to entering the 18-digit number manually) and to print receipts, vendors need extra devices. Entering HIP takes significantly longer than using cash or credit cards and debit cards, which can use regular card readers. When the transaction does go through, the receipts are somewhat confusing. As consumers spend SNAP and HIP, the receipt shows that the remaining balance of SNAP goes down, but the amount of HIP earned goes up. At least once a week, a customer assumes that the “HIP earned” amount is the amount of HIP they have left, not the amount of HIP that has been spent so far.
Takeaways for Future Programs
HIP is an incredibly successful program that increases access to FVs for thousands of low-income Massachusettsans, and issues with the program only illustrate that even well-supported programs struggle to integrate nutrition incentives into existing frameworks.
Embrace Multiple Integration Strategies
The farmers market I work at also runs a dollar-for-dollar SNAP match program for up to $15 per market, which is done through tokens ($1, $2 and $5 plastic coins). We also take WIC Farmers’ Market Coupons ($2.50 each), which come in booklets and are each around the size of a check. While there are clear advantages to the EBT card delivery for HIP—it looks like a credit card, it’s easy to carry around, it allows payment of precise amounts (as opposed to in $1 or $2.50 increments) and it allows simultaneous use of SNAP—there are also advantages to tokens and vouchers. It is easier and quicker, for both consumers and vendors, to count tokens and vouchers than to check a HIP balance. Tokens and vouchers are the fastest payment method possible because we cannot give change for tokens or vouchers, so they are faster even than paying with cash (I have to dig for change) or credit card (the card readers are not particularly fast). Finally, in my personal experience, language barriers are very easy to overcome with tokens or vouchers because it is clear how much money the customer wishes to spend and there are never tech issues.
For some consumers, EBT card delivery may be easier and less stigmatizing. However, for other consumers, using a card may make navigating the farmers market more confusing, especially if they are not comfortable checking their HIP balance through the app. Though HIP does not currently allow mobile payments(like an ApplePay equivalent), there has been rising support for integrating SNAP with mobile payments in order to prevent stigma as virtual credit cards gain prevalence. An ideal program would provide consumers with the option to use tokens or vouchers, EBT, or mobile pay, hopefully increasing accessibility to a wide variety of consumers who may prioritize different factors when picking a payment system. If markets already have market token programs, allowing people to redeem their HIP as market tokens might be a viable solution. Ultimately, however, without removing the requirement that SNAP/HIP users enter their PIN number for each transaction, SNAP/HIP transactions will likely be slower than using a credit or debit card and may be stigmatizing if no other customers need to enter their PIN.
Avoid Monopolies Where Possible
HIP’s integration with EBT and SNAP is a remarkable success because it prevents consumers from needing to complete a special sign-up; anyone enrolled in SNAP is automatically enrolled in HIP. However, this same integration makes it difficult to avoid technological monopolies. The EBT system for HIP requires five main components—BEACON (the Massachusetts DTA eligibility system), EPPIC (the EBT processing system), the participant’s EBT card, the retailer point-of-sale system, and retailers’ third party processor systems—each of which presents its own technological challenges. Integrating these systems is tricky, and it is understandable that Massachusetts currently has only two processing options available. However, to the extent possible, Massachusetts and other programs should attempt to avoid monopolies, thus allowing innovative new technological ideas to emerge. For example, new programs could create more intuitive receipts, automatically run smaller SNAP transactions to hit the larger HIP amount, and run on the same card terminals, reducing potential stigmatization from vendors needing to use a different device (an iPad) to process HIP. If HIP and/or SNAP expand to mobile payment, that may be an opportunity for Massachusetts to foster partnerships with new companies.
Broader Takeaways for a Nutritional Incentive Program
Though there is not a national version of HIP, there is a national funding program, the Gus Schumacher Nutrition Incentive Program (GusNIP), which provides grants to non-profits and government agencies to run local programs that increase consumer access to FVs. This includes funding nutrition incentive programs. Based on an analysis of current GusNIP programs (see below), most large GusNIP-funded nutrition incentive programs operate through farmers markets and may also operate through community supported agriculture, grocery stores, or corner stores. Focusing solely on farmers markets, there are various barriers to creating a national nutrition program. Anything done through EBT cards likely runs into similar problems seen in HIP: a limited number of companies will create the technology, the program likely cannot be run on a normal card reader because there needs to be a way to separate out the HIP eligible items from the SNAP-eligible but not HIP-eligible items, and vendors will need to invest in new technology. The EBT technology is also not completely reliable. Alternatively, many states run similar programs where vendors instead give market tokens or scrip for dollars spent on FV, and consumers can spend those at the same market (see below). However, this method requires distribution of tokens, and planning of how cross-transferable tokens are across different markets and different years. More broadly, any national nutrition incentive program is likely to only be accessible to people who have farmers markets, or perhaps grocery stores, near them, which poses accessibility issues (many counties in the United States have no farmers markets). Finally, since nutrition incentive programs may not be able to run on classic card readers and require the consumer to enter a PIN, and the tokens or scrip are clearly recognizable, there are potential stigmatization concerns as consumers will visibly be using SNAP.
| Program | State(s) | Amount ($) | Venues | Mechanism |
| California Nutrition Incentive Program (CNIP) | CA | 7,166,877 | Farmers Markets, Mobile Markets currently, could also be used at CSAs, Farm Stands, or small business Retail Stores. | Grants awarded to venues. CalFresh shoppers using EBT receive tokens or scrip. For every dollar spent on California-grown FVs, shoppers receive between one and four dollars in CNIP, which can only be spent on California-grown FVs. |
| Double Up Food Bucks | MI, OR, NY, IA, MS, CO, Heartland (KS and MO), NM, AZ, HI, UT | Total: 41,062,073
By State: 12,500,000, 1,921,875, 2,279,600, 4,634,700, 841,000, 2,655,483, 4,050,237, 3,292,364, 4,249,344, 2,637,528, 1,999,942 |
Grocery stores, Farmers Markets, CSAs (depending on state), corner stores (depending on state) | SNAP shoppers receive tokens, scrip, or money on a card. For every dollar spent on FVs, shoppers receive one dollar in Double Up Food Bucks, which can only be spent on FVs. |
| Establishing a Metro Washington Region Incentive Program Coalition: Improving stewardship of SNAP and SNAP incentives for farmers markets/CSAs
|
DC, Maryland& Virginia | 1,426,146 | Farmers Markets, Direct Marketing Farmers, CSAs, working to include Brick and Mortar Locations | The program works with different programs within the region. The Maryland Market Money program allows shoppers to receive one dollar in market tokens for every one dollar spent on SNAP-eligible food items (generally up to $10 per household per day). The tokens can then be spent on any SNAP-eligible food items. |
| Big Apple Incentives
|
NY | 5,513,510 | Multiple programs: Some operate at farmers markets, some at grocery stores | Shoppers using SNAP receive a dollar-for-dollar match on FVs and beans. Shoppers receive the incentive through $2 Health Bucks token for every $2 spend on SNAP, with a maximum of $10 per transaction. Also expands Get the Good Stuff, which includes frozen, canned, and dried fruits, vegetables, and beans. For each dollar spent through SNAP, shoppers earn a dollar on a program loyalty card to spend on eligible foods. Shoppers can earn up to $10 a day. The program also aims to decrease prices of food boxes and provide a 50% discount on food boxes to shoppers using SNAP. |
| Market Bucks
|
MN | 1,238,830 | Farmers Markets | Shoppers will go to the information booth, swipe their EBT card for the amount they wish to spend (up to $10), and receive an equivalent amount of market bucks, which can be used on any SNAP eligible food, and an equivalent amount of Produce Market Bucks, which can be used on FVs. Shoppers can purchase up to $30 in food for $10 in SNAP. |
| Link Up Illinois | IL | 881,018 | Farmers Markets, Farm Stands, Food Co-Ops, Independent Grocery and Corner Stores | Shoppers using a Link card (a card to access cash assistance or SNAP benefits) will receive Link Match vouchers (scrip) when they purchase healthy foods. Shoppers will receive a dollar-for-dollar equivalent of Link Match vouchers, and the vouchers can then be spent on FVs. Vouchers are individualized to the vendor, though they can be spent on a later date. |
| Food bucks | PA | 749,682 | Farmers Markets, Mobile Markets, Grocery Stores | Shoppers using SNAP receive $2 in food bucks for every $5 they spend at participating venues. Food bucks can be used for FVs. |
| Más Fresco
|
CA | 3,415,200 | Northgate González Markets | CalFresh shoppers receive either $2 or $4 in rebate dollars for every CalFresh dollar spent on FVs at participating venues. Shoppers can earn up to $100 a month in rebate dollars. Shoppers will pay for FVs with their EBT card, then receive the rebate dollars on their Northgate González Market Mi Familia card. They can then use the Mi Familia card to buy additional fruits and vegetables. |
| Washington Fruit and Vegetable Incentives Program | WA | 4,797,199 | Farmers Markets, Grocery Stores | Multiple programs. Includes SNAP Market Match, SNAP Produce Match, and a Produce RX program. At SNAP Market Match, shoppers swipe their EBT card at the information booth for the amount they would like to spend and receive that amount in EBT tokens and the same amount in SNAP Market Match Dollars. Markets match $40 or more per day. Market Match dollars can be used for FVs.
The SNAP Produce Match works at participating groceries. Shoppers who use their EBT card to buy at least $10 of FVs will receive a $5 coupon on their receipt that can be used on the next trip to buy FVs. |
