Hidden costs and benefits of government card technologies

The current health-care debate and the ongoing budget debates highlight the widely varying cost estimates for government programs, many of which use information technology. Information technology alone does not necessarily improve productivity or reduce costs, however, and it is often oversold as a panacea for solving all of what ails an organization or a society. The infusion of information technology often may change the balance of costs divided among various providers and recipients of government programs. Information technology also can bring with it risks or enhancements to personal privacy or other social costs and benefits (depending upon how it is applied), the importance of which goes well beyond any immediate cost-effectiveness calculations. We explore two specific examples of this cost/benefit evaluation applied to card technologies: food stamps and other assistance cards, and health-care cards.<>