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Tuesday, October 20, 2009
Ind. Gov't. - Although "State will cancel its $1.34 billion contract with IBM", concerns also expressed about ACS
Updating earlier ILB entries, see AP's Ken Kusmer reported late today -- here is a sample:
Rep. Peggy Welch, a Bloomington Democrat who sits on both the State Budget Committee and the General Assembly's Medicaid Oversight Commission, said some lawmakers wonder whether Dallas-based ACS was responsible for some of the poor service, lost documents and other problems that resulted in Daniels firing IBM Thursday from a 10-year, $1.34 billion contract to automate intake for food stamps, Medicaid and other welfare benefits.“We're going to be watching closely on ACS, because there is a perception that they are just as bad an actor as IBM,” Welch said after a meeting of the Legislature's Medicaid Oversight Commission.
Rep. Suzanne Crouch, R-Evansville, said lawmakers remain skeptical of ACS because it was brought in by Mitch Roob, a former ACS executive who oversaw the IBM/ACS project as Family and Social Services Administration secretary until January, when he became Indiana's secretary of commerce.
“People are uncomfortable that ACS is still in place and that they were brought on board by former Secretary Roob,” said Crouch, one of several Evansville lawmakers who've led legislative criticism of the welfare changes.
Roob's office did not immediately respond to a message seeking comment.
The lawmakers' comments provided the first indication since IBM's firing that political pressure also was building against ACS, one of IBM's largest partners in the welfare outsourcing that moved 1,500 case workers from the state's payroll to ACS' employment 2 1 / 2years ago. ACS workers compile eligibility data on welfare applicants before state employees decide which benefits to award.
Posted by Marcia Oddi on October 20, 2009 07:21 PM
Posted to Indiana Government