« Ind. Gov't. - "Daniels' emphasis on ethics opens the door to scrutiny " | Main | Ind. Courts - Evansville Courier&Press editorial on move to allow cameras in trial courtrooms »

Sunday, May 14, 2006

Ind. Gov't. - More on: The Roob-FSSA's business approach

Julie Creek of the Fort Wayne Journal Gazette has an excellent analytical piece today headlined "Losing the ‘human factor’: State focuses on technology in privatizing key welfare duties." Some quotes:

FSSA Secretary Mitch Roob, plucked from the private health care industry by Gov. Mitch Daniels, is spearheading a plan to turn over the state’s entire eligibility process to a private, for-profit corporation. He looks to technology to guide people through the public assistance maze, largely replacing caseworkers. Applicants will connect with call centers or go online to complete assistance forms.

The winning contractor stands to earn up to $1 billion over 10 years.

Advocates for the poor fear that losing the human factor will scare confused and troubled poor people away from the system. And there doesn’t appear to be a Plan B to catch those who fall out of the safety net or to catch everybody if the safety net can’t stand the stress.

The decision to privatize has been widely publicized. But Roob has said little about how an overhauled system will work, citing confidential contract negotiations. A public hearing on the contract is set for June 30, and it is scheduled to be signed July 5. The contractor will take over shortly after that.

In a just world, huge changes in the way our most vulnerable citizens receive the public assistance that keeps them alive deserve a thorough airing in a public forum. With Daniels’ blessing, no legislative oversight and a slam-bam contract-approval process, that’s not likely to happen.

The state is offering financial incentives to the winning contractor for cutting costs and moving people off public assistance rolls. Hoosiers should demand to know how the state plans to safeguard the poor, who must depend on a company whose first priority isn’t likely to be their welfare.

So far, Roob is asking Hoosiers to trust him to make decisions on behalf of Indiana’s weakest citizens, promising that they won’t be denied access to public assistance. That’s a lot of trust. * * *


Governments have a long history of hiring private companies to perform specialized services, but Indiana will be among the first states to privatize the process of determining eligibility for public-assistance programs.

Most of what is known about the privatization plan is contained in a request for proposals issued by FSSA last fall. The RFP, as it’s known in government circles, is a guide for private companies that wish to bid on the project, outlining the agency’s requirements.

FSSA’s highest priorities: updating technology, saving money and bringing down the error rate.

Mindful they were trolling for profit-minded companies, FSSA officials sweetened the pot by specifying that the company stands to earn bonuses for cutting costs and moving people off welfare rolls.

The RFP attracted two proposals, from Accenture LLP, a spin-off of the Arthur Andersen Co., and IBM. FSSA officials are expected to make a decision on the winning company this week and begin negotiating a contract before the June 30 public hearing.

Though outdated technology is a major problem, Roob said the winning contractor will design only a “wraparound” system to supplement the existing computer system. The contract will also require the contractor to open call centers and create an Internet site so clients can apply for aid without going to a welfare office. Clients would also be able to apply for aid at township trustee offices, food banks and other agencies. * * *

Advocates for the poor who see the privatization plan as inevitable are hoping simply that the state will negotiate a contract that protects the clients who depend on their services.

They argue that federal government safeguards will prevent a private company from denying benefits to those who are eligible. They’re more concerned about the kind of technological snafus that caused havoc in Texas last winter when the state went online with a similar program engineered by Accenture, one of Indiana’s suitors. Texas officials were forced to put the program on hold in April until technical glitches and staffing shortages are fixed.

A Texas-style meltdown would be a calamity, and it’s imperative that state officials make sure they have a backup plan, especially considering that there have been problems with Accenture-built systems in other states too.

Most important, Hoosier voters must hold state officials accountable for the lives with which they’ve been entrusted, especially in an era when it’s popular to blame the poor for being poor. Accountability begins when people pay attention.

“My biggest fear is that the public doesn’t understand what’s going on,” said a caseworker who asked not to be identified for fear of getting fired. “Mitch Daniels will look like a savior. He will be seen as having gotten rid of a system the public doesn’t like. All they see is welfare moms. Daniels will look good because he got the big welfare monkey off the state’s back.”

Posted by Marcia Oddi on May 14, 2006 08:22 AM
Posted to Indiana Government