The Herald Bulletin

Afternoon Update

State News

July 31, 2008

10:08 p.m.: Complaints about welfare system

KOKOMO — People receiving food stamps, Medicaid and other welfare told a legislative study committee that state changes in determining their eligibility have cost them their benefits at times, and they urged the lawmakers to fix the system.

“You folks have never lived in our shoes. Until you do, you don’t know what we’re going through,” said Judith Phillips, 66, of Kokomo, who blamed the new system for the loss of her food stamps for two months earlier this year.

The Family and Social Services Administration last year began rolling out the changes in a 12-county area including Kokomo, Marion, Muncie and Anderson and has since expanded them to 47 other counties. Under the changes, most state case workers became call center operators and clients no longer had a single county case worker supervising their cases.

The changes have drawn fire from lawmakers, welfare clients and their advocates, who claim the new system loses necessary documents, leaves telephone callers on hold for long periods and creates other problems.

Wendy Adcock, 29-year-old mother of two young sons from Kokomo, told the panel Medicaid had twice rejected prior authorizations for her younger son’s asthma medication, which costs $800.

“That prescription is at a CVS on Sycamore Street still waiting for prior authorization from Medicaid because it costs $800 to have it filled, which I don’t have.”

Committee chairman and House Ways and Means Chairman William Crawford, D-Indianapolis, said some people have been unable to access call centers without long waits. Crawford also mentioned a letter to the FSSA from the federal Food and Nutrition Service advising the state to delay any further rollout of the welfare changes until it improved its timeliness in processing applications.

“In the rollout areas, there are complaints,” Crawford said, drawing applause from the crowd. “We want to assure the public that these programs are going to operate in a timely fashion.”

FSSA Secretary Mitch Roob told lawmakers that the agency is working to improve the system and that he had representatives at the hearing to help clients with specific problems. Agency spokeswoman Elizabeth Surgener said those workers offered the same services people could get at their county office.

“As we talk to folks and listen to their concerns, we want to not just listen, but get people help too, right away,” Surgener said.

The state awarded a team of vendors led by IBM Corp. and Affiliated Computer Services Inc. a $1.16 billion, 10-year contract to process applications for Medicaid, food stamps and other public safety net benefits received by about 1.1 million children, seniors, people with disabilities and other needy Hoosiers. The deal introduced the call centers, the Internet and fax services as means to apply for benefits.

Steve Woodall, a former state case worker, went to work for Affiliated Computer Services at the new system’s Marion call center for about a year until leaving his job last April.

“I’ve seen many, many things that are flawed with this system. I believe any client should be able to call in and talk to someone who has ultimate responsibility for their case, and this system does not provide that,” Woodall said.

Woodall was introduced by his brother-in-law, state Rep. Ron Herrell, D-Kokomo.

“My heart aches when I think about a business making these determinations for people who are the most vulnerable in this state,” Herrell said. “... It breaks my heart because these are people in need.”

FNS Regional Administrator Ollice Holden sent a letter dated June 23 to Roob advising the state to delay any further rollout of the welfare changes until it addressed concerns over food stamp processing timelines.

“FSSA must be able to demonstrate that the modernized service delivery model does not further impede the timely processing of food stamp benefits,” said the letter, obtained this week by The Associated Press.

FNS spokesman Lawrence Rudmann said Thursday the agency advised FSSA to improve its timeliness before it takes the welfare changes to any additional counties.

“It’s advice we expect to be followed,” Rudmann said.

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