BCG/SNAP Report

Minnesota’s six Feeding America food banks are joining together to unveil the results of a pro-bono study conducted on behalf of Second Harvest Heartland by The Boston Consulting Group (BCG), a worldwide strategy consulting firm. That study indicates that Minnesota is leaving more than $200 million in food and money on the table by not fully participating in the Supplemental Nutrition Assistance Program (SNAP, formerly known as “Food Stamps”).

According to the report, Minnesota trails all but seven states in SNAP participation with only 302,000 of the state’s 670,000 income-eligible residents receiving benefits. In addition, only five states have higher costs to administer SNAP. BCG suggests that by enrolling currently eligible but non-participating individuals into the program, Minnesota would add $210 million to its annual economy as a result of direct benefits and a multiplier effect as new recipients shop in local food stores.

In addition, BCG states that by bringing Minnesota’s SNAP per-case cost closer to the national average, the state would potentially save $29 million annually. In total, by becoming a cost-effective and high-performing administrator of SNAP, Minnesota could see $210 million in annual economic stimulus, local jobs and savings.

The BCG report notes that of the 368,000 eligible Minnesotans not participating in SNAP, 169,000 don’t realize they are eligible and 130,000 are deterred by cumbersome administrative requirements. To address these participation barriers, BCG recommends five specific initiatives:

  • Heightened SNAP awareness campaign
  • Aggressive enrollment outreach efforts
  • Phone interview option
  • Cross-referencing eligibility with other support programs
  • Simplified eligibility criteria (Currently in progress in the Minnesota Legislature.)

The report also recommends a sixth initiative, migrating from a county-directed to a state-directed program, to push Minnesota into the 10 lowest-cost states for SNAP administration. If implemented, these initiatives would add an estimated 178,000 more Minnesotans into SNAP and move the state into the top 10 nationally for SNAP participation.