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Thursday, October 15, 2009

Ind. Gov't. - "State will cancel its $1.34 billion contract with IBM and other vendors to automate the application process for food stamps, Medicaid and other benefits"

Channel 6 News has the report.

[More at 4:15 PM] Here, from the just issued press release:

INDIANAPOLIS (October 15, 2009) – Governor Mitch Daniels said today the state has terminated its contract with IBM for the delivery of welfare services. The contract was canceled because the company did not make satisfactory progress to improve services to welfare applicants and recipients under a plan to correct deficiencies.

In its place, the Family and Social Services Administration will go to a hybrid system that will incorporate successful elements of the old welfare delivery system and what is known as the modernized system. The hybrid system will include more face-to-face contact and more localized team-based case management. * * *

Daniels said that for the past several weeks, FSSA has been developing alternate plans for welfare delivery if a decision was made to end the IBM contract. FSSA will replace IBM as the integrator of services and will continue to use contract employees to perform procedures such as application intake and document gathering, and state employees will make eligibility determinations as they do now. This separation is a feature of the modernized system that has resulted in consistent application of standards throughout the state and has reduced fraud and abuse.

The IBM system suffered from two fundamental flaws in concept. The system tried to remove the burden of required face-to-face meetings and it used a task-based approach rather than a case-based approach to process applications.

Face-to-face contact and team-based case management in county offices will again be key elements of the revised welfare delivery system. Additional contractor and state staff will be moved into county offices to increase the number of employees available for case management. The state will continue to shift to paperless case files, rather than the burdensome paper files that clogged the eligibility system.

IBM’s contract will be terminated in 60 days, but there will be a wind down period to transition responsibilities. During the 60-day period, FSSA will develop a detailed implementation plan for the hybrid system.

The rest of this long release should be available here, at the Governor's news release page, shortly.

Posted by Marcia Oddi on October 15, 2009 04:00 PM
Posted to Indiana Government