August 2011

Indiana Continues With Its Implementation of the Hybrid Welfare System

On August 23, 2011 the Indiana Family and Social Services Administration (FSSA) presented to the General Assembly's Select Joint Commission on Medicaid Oversight (SJCMO) a report on its efforts to implement the hybrid version of its privatized rendition of federally funded public benefit programs.   These programs, which were entirely administered by state employees until early 2007, are commonly called public welfare services.   The programs are technically administered through FSSA's Division of Family Resources (DFR), but since 2007 intake and many administrative functions have been largely in the hands of for-profit private companies (or vendors, if you will).  In late 2009, due to the systematic and tragic failure of the privatized welfare system, which literally harmed and placed in jeopardy tens of thousands of senior citizens, persons with disabilities, children, and low-income families in general, Governor Daniels announced the firing of IBM, which nominally administered the privatized system, and the partial restoration of FSSA administrative control over public benefit programs at the state and regional levels.

This so-called hybrid, which left the private vendors in place with the exception of IBM, was started in southwest Indiana and has been expanded to other regions of the state.  FSSA is rapidly moving to expand the hybrid system to the entire state.  On August 23rd the agency reported to SJCMO on the outcomes achieved so far by FSSA in implementing the hybrid welfare system including client outcomes.  FSSA is reporting dramatic improvements in outcomes under the hybrid regime.   Readers can link to that report by clicking here.

The Generations Project is closely following the hybrid process.  The Project continues to receive direct reports from Individuals in communities across the state that the hybrid system is continuing many of the flaws contained in the original privatized version of public benefit programs in Indiana, including the use of private company employees who seem ill equipped to properly serve persons needing Medicaid, Supplemental Nutrition Assistance Program (SNAP), and Temporary Assistance for Needy Families (TANF) eligibility services.  These informal field reports raise questions regarding the accuracy of the outcomes that are now being reported by FSSA for the hybridized privatized system.

In far too many cases, especially those with any degree of complexity involving low-income Hoosiers needing medical services, food and nutrition assistance, and basic family maintenance services, DFR and the private vendors seem to continue to drop the ball .  In too many instances staff members for local charities, providers, and other agencies continue to do the work that use to be routinely done in county DFR offices before privatization.  This burden has been assumed at the local level  in order to keep senior citizens, persons with disabilities, and children from being placed in harm's way for lack of medical care, food and proper shelter.  It would appear the cost of this burden, which seems to have been permanently shifted to local agencies, charities, providers, and volunteers is only being partially reported, if at all, by FSSA.  Members of the Indiana Home Care Task Force Committee on Welfare Privatization Issues continue to call for a complete third party audit of FSSA's welfare privatization system, and its newer hybrid version, in order to resolve these questions .