MEMORANDUM

DISCUSSION:

In an effort to reduce costs associated with processing and sending benefits to participants, eligibility specialist (ES) should discuss the option of direct deposit by electronic fund transfer (EFT) to a checking or savings account as a preferred method of receiving cash benefits. This discussion should occur at the time of initial application, during annual reviews, and interim contacts.   ES should discuss this with every applicant or recipient of any type of MO HealthNet cash assistance.

ES should explain the following benefits of EFT and encourage participation:

• Benefits are available to the participant on the availability date instead of waiting for delivery by mail
• EFT ensures safe delivery of funds without the risk of the check being lost or stolen in the mail
• EFT eliminates the need to go somewhere to cash the check
• There are no associated fees
• Funds are immediately available for withdrawal using an ATM card or to write checks

Following the discussion of the benefits of EFT, the ES should provide the participant with the Agreement for Direct Deposit form. The participant can take the form with him/her and return by mail, fill out and place in the office drop box or leave the completed form with reception staff.

NECESSARY ACTION:

• Review the memorandum with appropriate staff.
• Discuss using direct deposit with all applicants and participants in cash assistance programs.
• Provide participants with the Agreement for Direct Deposit form at initial application and annual review if not enrolled.

ATTACHMENT:

• Direct Deposit Flyer

AC/VB