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July 31, 2008 By Andy Opsahl
Indiana's automated welfare eligibility pilot may halt operations after rolling out services in 59 of the state's 92 counties. A group of vendors led by IBM ran the project under a $1.16 billion, 10-year contract. The Food and Nutrition Service (FNS) of the U.S. Department of Agriculture recommended the Indiana Family and Social Services Administration (FSSA) delay any further rollout of the system on the grounds that it kept welfare recipients waiting too long for benefits.
"Indiana's most recent monthly reports indicate a decline in the timeliness of application processing that has occurred in the pilot region since the transition to the modernized service delivery model. Indiana's statewide application processing rate also continues to be a concern," said a letter from FNS Regional Administrator Ollice Holden to FSSA Secretary Mitch Roob.
No Indiana FSSA representatives were immediately available to comment on this story.
Indiana's initiative is the latest welfare system outsourcing project to run into serious problems. Texas cancelled a similar contract last year with Accenture which would have privatized the state's welfare eligibility process.
The Indiana project, which kicked off in October, aimed to accelerate eligibility by eliminating individually assigned caseworkers and empowering anyone answering the phone to help customers, said Zach Main, director of the FSSA's Division of Family Resources in an April interview with Government Technology.
At the time, Main criticized Texas' use of inexperienced call-center workers.
"Texas modernized and thought they could replace seasoned caseworkers with $8-per-hour people off the street," Main said. "We had an incredibly educated work force -- a lot of them with master's degrees and bachelor's degrees. The average tenure was more than 10 years, especially as you got into more rural areas. ... We said, 'These people are too valuable to let them go off to other places.'"
The FSSA turned 1,500 of its 2,200-person work force into IBM employees. The agency required IBM to offer all 1,500 employees jobs for a minimum of two years at the same pay and benefits they received from the state.
In his April interview, Main said citizens were satisfied with call-center operations, even though callers were waiting longer than planned to speak to eligibility workers. The FSSA planned for phone hold times of only 90 seconds. Instead, callers waited an average of five minutes, Main said.
He added that many callers were understanding when call-center operators apologized for those delays. "[Clients] say, 'Are you kidding me? Five minutes on the phone? I waited 10 minutes at the bus stop just to catch the first of two buses I needed to take to the county welfare office. This is incredibly convenient for us.'"
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The Food and Nutrition Service subsequently explained their position and acknowledged that FNS did not have statutory power to halt this project. See the Indiana Governor's site The following is an excerpt from an email received today from Kate Houston, deputy undersecretary of agriculture for food and nutrition and consumer services: "Our June 23 letter states that "FNS expects FSSA to realize substantial improvements in the area of application processing before the State proceeds with any additional roll-out of the modernization project. This was not an order to stop rolling out - rather a statement that we trusted Indiana's commitment to successful implementation would lead the State to this same conclusion. "FNS does not have the authority to order the State to stop the project. As your statement notes, FNS has authority to suspend/disallow administrative costs under 7CFR276.4. This authority is directed at violations of the Act and regulations. We did not invoke this authority in our June 23 communication." Link to this event: http://www.in.gov/portal/news_events/24779.htm I think it important for your publication to completely inform its clients.
I MOVE TO IND IN AUGUST 2008.APPLIED FOR BENEFITS SEPT 18. NOV28 RECEIVED OUR FOOD CARD.MEDICAID WAS APROVED IN JAN FOR ME.MY WIFE WAS APROVED IN FEB. THE STATE PAYS OUR MEDICARE PRIMUIN. SHE IS STILL WAITING.IT WILL BE FOUR MONTHS IN APIRL.IN OHIO IT TAKES TWO WEEKS FOR EVERYTHING.WITH AN APPOINTMENT.FACE TO FACE INTERVEIW.YOU CAN TALK TO SOMEONE NOT A MECHINE.THIS IS A BAD WAY FOR THE STATE TO OPERATE.
Why do you have a computer and internet access if we the taxpayers are paying welfare to you?
There are such things as libraries for us peons that people are paying welfare for to use. I have a job and I've paid into this system and now that my bills have gone up, but my pay has not, it's almost impossible to feed my family and pay my bills. This whole system is messed up. I applied 9/15, it is now 11/15 and I'm still waiting for help.
Indiana Welfare Privatization is HORRIFIC! Affiliated Computer Services, a for $profit$ company has created many of the core issues. They lack ethical standards of responsibility and accountability which derives from the top corporate management and oozes down to middle and lower management. Their management staff are deficient and uncommitted in identifying the fundamental problems. Politics is dominant in upper and middle management, and middle managers make arbitrary decisions and usually do not suffer the consequences. Nor are they held responsible for the mess. In other words, the exploitation and castigation of the those working any position other some form of management will continue. The operative assumption should be that someone, somewhere, has a better idea; and the operative compulsion is to find out who has that better idea, learn it, and put it into action to find initiatives to improve client services, total claim results, operational efficiency, and staff retention. An effective organizational structure that would facilitate working relationships between the various entities and have a set order and control that would enable monitoring of all processes. Using a "Divisional Structure" indisputably isn't working. A "Matrix" type program would be evidently a more considerable approach. Indubitably GROSS NEGLIGENCE.