Study: E-mail can cut costs, improve government service

Federal agencies could reduce their operating costs substantially by communicating with citizens by e-mail instead of by postal mail, a new Rand study says. But security concerns and the high initial costs of establishing a reliable e-mail infrastructure have stymied its growth, the study says.

The study, "Sending Your Government a Message: E-mail Communication Between Citizens and Government," suggests that agencies should develop e-mail strategies as e-mail becomes the preferred communications method for millions of Americans. Rand is a Santa Monica, Calif.-based think tank.

The study looks at the Health Care Financing Administration (HCFA), the agency that manages Medicare and Medicaid. HCFA mails hundreds of millions of notices to Medicare beneficiaries every year. "There appears to be a strong case for the eventual use of e-mail to [reduce mail] costs," said C. Richard Neu, a Rand senior economist and co-author of the study. "It's a lot cheaper to do things electronically than by the post. Plus, there are potentially great improvements in service."

But Rand admits there are problems with the current e-mail infrastructure that keep the government from offering more personal services over e-mail. "The biggest problem is the security, confidentiality, integrity and authenticity of electronic documents," said Neu. "Medicare information is potentially highly confidential information. The privacy of those documents is very important."

The technology to address security concerns exists, Neu said. However, it has never been scaled to the national level, he said.

Another problem is Internet access. Millions of Americans do not have access to e-mail. But that should not stop the government from providing more online services, Neu said, since more and more Americans will have Internet access in the coming years.

The study also suggests that the U.S. Postal Service, or some other government agency, could have a role in creating e-mail addresses for every citizen.

The Rand study was supported by the John and Mary R. Markle Foundation, a New York-based not-for-profit philanthropy that gives grants for the study of communications technologies.