Hypercell for SNAP provides states with immediate technological leverage needed to avoid multi-million dollar penalties, shifting processing from weeks to days, while ensuring sub-6% payment error rates

Hyperscience, a market leader in enterprise AI infrastructure software, focused on Intelligent Document Processing (IDP), today announced Hypercell for SNAP, a purpose-built solution designed to help U.S. State and Local Governments meet increased Supplemental Nutrition Assistance Program (SNAP) compliance mandates introduced under the H.R. 1 bill. Hypercell for SNAP empowers state agencies to automate and orchestrate SNAP application processing, reduce costly payment error rate (PER) penalties, and deliver critical food assistance to eligible families and individuals faster.

“State governments have invested millions in legacy technologies that have failed to solve the core SNAP challenge, leaving applicants facing weeks of delays and exposing states to costly penalties under new compliance mandates,” said Andrew Joiner, CEO, Hyperscience. “The problem isn't the portal; it's the paper. Documents remain the biggest bottleneck. Hypercell for SNAP applies our deep AI and ML software expertise to provide an accurate, rapid, and turnkey understanding of the varied, complex documents in a SNAP application packet—finally allowing states to overcome this systemic processing failure and meet their fiscal and humanitarian goals simultaneously.”

A Strained System: SNAP in Crisis

Following the enactment of H.R. 1, states administering SNAP benefits face major challenges that significantly increase operational risk and administrative burden:

• Document Bottleneck: Despite SNAP’s critical role in addressing food insecurity, an estimated 40% of applications are rejected due to being incomplete, illegible, or incorrectly filled out. This high rejection rate exposes deep flaws in an outdated, confusing, and often inaccessible application process, especially for families and the elderly facing economic hardship, language barriers, or limited digital literacy.
• Double the Paperwork: Under the new legislation, the 42 million SNAP beneficiaries across the United States are required to reapply or recertify their eligibility every six months, as opposed to the original annual application process. This change effectively doubles the paperwork that must be processed by state agencies, at a time when most systems and case workers are already overwhelmed with applications. Additionally, new work requirements will add to the already existing document volume and complexity.
• Financial Penalties: These increased eligibility compliance requirements go into effect starting October 2026. As of October 2027, the federal government will impose penalties on states whose SNAP Payment Error Rate (PER) exceeds 6 percent, putting those states at risk of access to the $100B in federal funding for SNAP programs¹. Currently 44 states exceed the 6 percent error rate, subjecting them to steep fines that will have a profound impact on state budgets².

These pressures make it essential for states to adopt smarter, faster, and more accurate ways to manage eligibility and benefits delivery to those who need it most.

Hyperscience Hypercell for SNAP

Hypercell for SNAP is a scalable, modular solution that helps State and Local Governments manage the operational challenges of SNAP, including the complexity of processing more than 30 eligibility document types, per applicant, with varying formats and frequent handwriting issues, across millions of applicants. Documents include, but are not limited to, driver's licenses, state IDs, passports, lease/rental agreements, utility bills, mortgage statements, pay stubs, employer letters, tax returns, utility bills, child care receipts, bank statements, vehicle registrations, and several others. While other technologies fail because of the high degree of document variability, Hypercell for SNAP is the only solution on the market capable of accurately reading and understanding this complex document landscape.

By deploying a proven-AI solution into this mission-critical, document-heavy workflow and ensuring accurate data flows to downstream systems, states can cut payment errors by 50 percent, cut administrative costs, and deliver SNAP benefits much faster, reducing the average payment time from 26 days to approximately seven days and improving health outcomes.

Solution Overview: Purpose-Built for State SNAP Operations

Underpinning the solution is the Hyperscience Optical Reasoning and Cognition Agent (ORCA), a proprietary Vision Language Model (VLM) framework developed and designed to address the high-variability document processing of SNAP applications. ORCA delivers excellent results with its zero-shot capabilities and “train-only-if-you-like” approach that enables organizations to handle high variability in document types while accelerating time to value.

Key components include:

Streamlining Document Processing and Eligibility Verification at Scale:

• Rapid Understanding: ORCA, combined with pre-trained proprietary Hyperscience models, enables fast document classification and extraction with minimal set-up for faster time to value.
• Automated Validation: Pre-built flows assess if required documents are present and in good order and can trigger a note to applicants flagging missing or incorrect documents. This reduces wasted time, improves the applicant experience and ensures caseworkers only review completed applications.
• Easy Human Review: Supervision interface surfaces packet status and details to caseworkers for quick review & decision.
• Enhanced Auditability & Traceability: Integration with Case Management Systems and reporting on key metrics improves system visibility for executives, program directors, and caseworkers.
• Advanced Image Processing: Delivers best-in-class image clarity and extraction accuracy, resolving a key root cause of downstream quality issues that legacy Optical Character Recognition (OCR) solutions fail to handle.
• Built-in Quality Assurance: Embedded quality assurance checks within the application ensure consistent accuracy and reduce manual rework, improving overall efficiency and trust in document processing.

A Secure, Compliant Solution to Reduce Administrative Burden and Improve Accuracy

Hyperscience is committed to delivering a secure, compliant solution to its public sector and enterprise customers. Hyperscience Hypercell for SNAP is FedRAMP® High authorized in partnership with Palantir Technologies through the company’s FedStart Program. This authorization establishes Hyperscience as the standard for government agencies seeking a secure and compliant AI platform to increase automation and efficiency, and lower costs. Hyperscience also achieved TX-RAMP Level 2 certification, enabling the company to securely process and store confidential and regulated data for the State of Texas.

Hyperscience undergoes an annual independent SOC 2 Type II audit, validating the design and operational effectiveness of our controls related to security, availability, and confidentiality.

The company maintains Cyber Essentials Plus certification, verified through a rigorous independent technical audit, further demonstrating its commitment to cybersecurity at every level.

Hyperscience provides the flexibility to deploy Hypercell for SNAP across public cloud, on-premises, or air-gapped environments.

A Broader Impact for Government Modernization

While this solution is optimized for SNAP, over 85% of the platform’s capabilities are directly applicable to other entitlement programs including Medicaid, TANF, and LIHEAP, offering a scalable path to modernize the full benefits landscape. Hyperscience aims to continue enhancing the Hypercell to help modernize the full ecosystem of integrated eligibility programs offered.

For more information on the Hyperscience Hypercell for SNAP, please click here.

Join Hyperscience at the following events, to learn more and see a demo of Hypercell for SNAP:

• Gartner Symposium, Orlando, Florida, October 20 – 23
• American Public Health Association (APHA) Annual Meeting, Washington DC, November 2 – 5
• Digital Government Summit, Springfield, Illinois, November 13

About Hyperscience

Hyperscience is a market leader in enterprise AI infrastructure software, focused on Intelligent Document Processing (IDP). The Hyperscience Hypercell platform unlocks the value of an organization’s back office data through the automation of end-to-end processes, and transforms complex documents into LLM and RAG-ready data to power new enterprise GenAI experiences. This enables organizations to transform manual, siloed processes into a strategic advantage, resulting in a faster path to decisions, actions, and revenue; positive and engaging customer, public, and patient experiences; and dramatic increases in productivity.

Leading organizations across the globe rely on Hyperscience to drive their hyperautomation initiatives, including American Express, Charles Schwab, HM Revenue and Customs, Mars, Stryker, The United States Social Security Administration, and The United States Department of Veterans Affairs. The company is funded by top tier investors including Bessemer Venture Partners, Battery, FirstMark, Stripes, and Tiger Global.

Sources

¹USDA Releases Annual SNAP Payment Error Rates for FY 2024

²Fiscal Year 2024 SNAP Quality Control Payment Error Rates

View source version on businesswire.com: https://www.businesswire.com/news/home/20251021319226/en/