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ArchitectureGovernment11 min read · 2026-05-25

Public Benefits Eligibility Engineering: API Integration Across 50 State Systems

42 CFR §433
Federal regulation governing Medicaid financial management — the audit authority that catches eligibility system failures
Public benefits eligibility determination requires integration with the Social Security Administration's State Data Exchange (SDX) and Beneficiary Data Exchange (BENDEX) systems, the IRS's Income and Eligibility Verification System (IEVS), state DMV records, and state wage databases — all while managing the MAGI vs. non-MAGI Medicaid distinction that determines which eligibility rules apply. The hub-and-spoke integration problem: each of these federal source systems has different authentication requirements, different data formats, different API styles, and different availability SLAs. The eligibility determination system must reconcile conflicting data from multiple sources in real time, during a client interview. The systems that fail this requirement generate federal audit findings under 42 CFR Part 433.

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