Review of the National Recipient System

The Department of Health, Education, and Welfare (HEW) proposed implementing a computerized National Recipient System (NRS) to help states reduce fraud, abuse, and error in the Aid to Families with Dependent Children (AFDC) program. NRS will match applicant-recipient identification data supplied by the states with records from other sources to identify overpaid or ineligible program participants. Total estimated federal and state systems costs for the first 5 fiscal years of NRS implementation and operations are about $38 million. This will cover only the costs of implementation, technical assistance, and operation and maintenance. No estimates have been made of the follow-up investigative costs associated with using the system.