ANDERSON — State welfare officials are once again being sued over recent changes to the welfare system.
A group of LaPorte County residents receiving state welfare is hoping a judge can stop the state’s planned switch to modernization in that county.
Attorney Shaw Friedman represents the group and released a statement Monday explaining the goal of the welfare recipients.
The residents “filed suit in LaPorte Circuit Court on Friday afternoon seeking an injunction to block the rollout of a privatized system of welfare services in northwest Indiana (Region 3) that would eliminate or substantially reduce face-to-face contact with caseworkers in favor of phone call centers and computer intake run by private vendors,” according to the statement.
Those named in the lawsuit include Gov. Mitch Daniels, Family and Social Services Administration Secretary Mitch Roob and the head of FSSA’s Division of Family Resources, Zach Main.
FSSA was also recently involved in a class-action suit backed by the American Civil Liberties Union that centered around the denial of benefits to those who’d undergone the modernization process.
Last November, FSSA launched a modernized version of the welfare system in 12 counties, called Region 1, which includes Madison County.
The new system eliminated the majority of state caseworkers and created a network for clients based on technology.
Instead of traveling to a county welfare office for help applying for benefits, clients could now use an Internet application and telephone interviews with a call center in order to get benefits.
Roob has often compared modernization to the act of using an ATM instead of a bank teller for financial transactions.
Dallas-based Affiliated Computer Services and IBM Corp. were awarded a 10-year $1.16 billion contract to handle welfare applications for the state.
By March, complaints about the new system popped up all over Madison County. Rep. Terri Austin, D-Anderson, spoke about the problems in March, noting that the issues were not isolated. “I can tell you that I am getting an increasing number of phone calls from constituents who are either being denied benefits or when they’re eligible, are receiving notices that they are no longer eligible.”
After the initial 12-county rollout at the end of 2007, FSSA rolled out Region 2 in March and another 20 counties in May. Overall, 59 counties are now operating under the new system with 33 left to go.
The eight plaintiffs in LaPorte County all receive either Medicaid, cash assistance or food stamps from the state and hope the lawsuit will keep LaPorte County from being added to the list of modernized areas.
“In their zeal to privatize government functions and turn over operations to various out-of-state corporations like IBM and ACS, the defendants have trampled upon common sense, they have disregarded the needs of the aged, the infirm and the disabled and they are violating federal and state law and regulations in the process,” Friedman said.
Rollout of Region 3 was delayed in July. FSSA has said the delay was caused by flooding in southern Indiana and the added workload of handling emergency benefits cases for flood victims.
FSSA officials were not available for comment by press time Monday.
LaPorte County Judge Thomas Alevizos has scheduled a hearing on the plaintiffs’ request for a preliminary injunction for Sept. 2.
“If the administration wants to provide computers and call centers as another entry point or option to check on benefits, that’s great, but you don’t replace highly skilled local caseworkers who do eligibility with somebody working for a private vendor in a call center,” Friedman said.
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By the numbers:
Number of Madison County households receiving food stamps: 6,218
Number of Madison County food stamp recipients: 13,648
Average monthly food stamp allowance per household: $230.82
Local News
10:14 p.m.: Lawsuit targets welfare rollout
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