Opinion: Social Services Privatization Merits Scrutiny by Strayhorn

Staff Editorial
Houston Chronicle
5/14/2006

With its $899 million plan to outsource the screening and certification of welfare and child insurance applicants off to a troubled start, the Texas Health and Human Services Commission needs all the help it can get sorting out the problem.

State Comptroller Carole Keeton Strayhorn, an independent candidate for governor, has missed few opportunities to bash incumbent Gov. Rick Perry, who appoints the board members of the HHSC. Her decision to audit the HHSC contract with Accenture might have a political motive, but it is justified by the pressing need to reverse the erosion of families access to vital assistance. After inviting state lawmakers to request an audit of Accenture's performance as manager for a consortium, the Texas Access Alliance, Strayhorn quickly acted on three such appeals. According to the comptroller, "the Accenture contract appears to be the perfect storm of wasted tax dollars, reduced access to services for our most vulnerable Texans and profiteering at the expense of Texas taxpayers."

Since Accenture began operating four call systems and a Web site to screen applicants for the child insurance program, nearly 30,000 children have lost certification. Between November and February, nearly 80,000 individuals were dropped from Medicaid rolls. Under the new system, processing of applications has been delayed and phone lines to call centers clogged. After announcing plans to replace state workers with private personnel, Health and Human Services officials have had to reverse course and give bonuses to keep state employees on the job.
In requesting the audit, three state lawmakers asked Strayhorn to look into hidden costs in the Accenture deal to see if legislators were given an accurate picture of the contract's projected financial benefits.

It's unfortunate that despite warnings from employee union representatives and journalists that the privatized system of call centers might make it more difficult for Texans to qualify for Medicaid and CHIP, Health and Human Services proceeded to implement a contract that has done exactly that.

If successful, the comptroller's audit will answer questions about how the state got into this mess and how it can get out of it. Instead of belittling her motives, the governor should join in the effort to prevent further harm to the neediest Texans.