Opinion: New Benefit System Suits More Texans
Albert Hawkins
Special to the San Antonio Express-News

5/31/2006

The San Antonio Express-News has published several news stories and columns about the state's plan to add new ways for Texans to apply for services such as Medicaid and food stamps.

But all have failed to include an important point of view - that of the client.
I understand the concerns of special-interest groups and employees worried about the loss of state jobs.

But my primary focus is on the millions of Texans who rely on our services.

We are listening to their voices, and they tell us they are ready for change.
A recent survey of more than 1,000 Texans enrolled in Medicaid and other health and human services programs found 80 percent of clients said they would be interested in applying by phone, and 82 percent want to be able to apply outside of normal work hours.

We recognize that some clients prefer to conduct business in person at a state benefits office.

While the Express-News is fond of saying the state "will shutter state offices," the truth is that we will maintain more than 200 offices across Texas.

San Antonio will continue to have four state benefits offices.

Two San Antonio offices will close - one is located on the same block as another benefits office and the other is within five miles of two other offices.

The project is not without its share of critics.

There are some who philosophically oppose outsourcing state functions to the private sector.

I appreciate that political position, but our approach has been driven by the statutory requirement to determine the most effective and efficient way to deliver services.

Our analysis found that contracting for call center services would generate more savings than state-run call centers.

All calls are answered in Texas, and one of the four call centers is located in San Antonio. The contract includes strict performance standards to ensure the state doesn't pay for services that aren't delivered, and we have identified several areas where improvements must be made.

In the meantime, we have delayed the rollout of the new system.

The Express-News recently ran an article about a letter signed by four members of the Texas congressional delegation opposing our efforts to expand the ways Texans can apply for state services ("Congressmen attack privatization plan," Thursday).

I was disappointed that the paper did not give equal attention to a letter signed by
20 Texas representatives in support of the project. As these leaders pointed out, there is a clear need for change.

Our system is badly out of date.

It uses a computer system built on a language that colleges no longer teach.

Its one-size-fits-all approach makes it especially difficult for the working poor - people who must take off work to go sit in an office.

We still send Medicaid letters to clients each month - at a cost of almost $750,000 for each mailing.

I understand and expect that a project of this magnitude will be closely watched by the public, legislators and the press.

We will continue to monitor the project's performance; act quickly and aggressively to improve shortcomings; and provide regular updates on our progress.

Certainly, we still need to improve the project's performance, but that is not an argument for maintaining an inefficient and outdated system.

We're still in the earliest phases of this project, but we remain committed to creating a system that works better and costs less.

Albert Hawkins is Health and Human Services executive commissioner.



Indiana Gov. Stirs Debate Over Welfare Privatization
Niki Kelly
Fort Wayne Journal Gazette

5/31/2005

INDIANAPOLIS - Gov. Mitch Daniels has inserted himself into the attempt to privatize the Family and Social Services Administration's eligibility operation.

In a response letter released Tuesday to AFSCME Council 62 - a state employees union - Daniels said the decision is an important one for the state, and "it will be made by me and me alone."

FSSA this year sought bids from outside companies that want to collect information from applicants and determine eligibility for Medicaid, food stamps, child-care vouchers, welfare and several other assistance programs.

The contract is estimated to be worth $1 billion over 10 years.

About 2,600 state employees perform those duties at county offices around the state.

AFSCME Executive Director David Warrick sent a letter May 18 to Daniels asking him to drop the privatization plan and work within the structure of state government to fix the system's problems or provide a cost-benefit analysis for the change.

"Providing welfare services requires dedicated and knowledgeable employees that understand the system and can help those most in need navigate the process," Warrick said. "In several states where privatization of these services has been attempted, inadequately trained workers have given applicants erroneous or contradictory information that has resulted in loss or refusal of benefits in which they are entitled."

And publicity about the two bidders hasn't been exactly positive. The lead company on the first bid is Accenture LLP, which had major problems on a similar project in Texas. The second bid is from IBM in conjunction with bidding partner ACS.

FSSA Secretary Mitch Roob worked for ACS from 2001 until he came to state government at the request of Daniels in early 2005.

Originally, the state agency had hoped to announce in May the company it would enter into final negotiations with, as well as release a proposed contract sometime in June with a public hearing on June 29. But in recent weeks, the Family and Social Services Administration has slowed the process.

"We are not going to rush the decision process based on some artificial deadline that we ourselves established," FSSA spokesman Dennis Rosebrough said. "Neither (bid) is a concern-free pick. But we are convinced, and the data is so compelling, that we need to fix this and we need to fix it now.

If there are some bumps - however they may occur - we are willing to accept that because we think the citizens of Indiana - both the applicants and the service recipients as well as taxpayers of Indiana - deserve a better more efficient system and it's worth it."

And while Roob was involved in the philosophical and policy discussion behind seeking bids from the private sector, Rosebrough said he has been removed from the decision-making process - both figuratively and literally because he will have back surgery today that will keep him out of the office for several weeks.

In his response letter, Daniels said that because of the gravity of the contract, he has added an extra step to the normal procurement decision process, which is usually handled by the agency seeking the contract and the Department of Administration.

In this case, the governor has established an interagency team to review the two bids and recommend whether to move ahead with negotiations with either company.
The team members include deputy chief of staff Earl Goode; Department of Administration Commissioner Carrie Henderson; Nate Feltman, chief of staff and general counsel for the Indiana Economic Development Corp.; Karl Browning in the Office of Technology; State Budget Director Chuck Schalliol; and Debra Minot, director of the State Personnel Department.

According to the letter, the proposals must "likely" meet six criteria,
including: reducing unacceptably high rates or error and waste in the welfare system; saving Hoosier taxpayer's money and ensuring that every state employee receives an offer either from the vendor at current wage rates and similar benefits or to stay with the state.

The team has already met twice and will visit county welfare offices soon to review responses to the bids.

"You've expressed concern that a new approach might not work perfectly and it may well not," Daniels said. "But it is hard to imagine a system that performs worse than the one we have now."

Warrick responded by saying AFSCME asked the governor to provide a cost-benefit analysis and Daniels has ignored that request.

"There is no evidence anywhere to think that using a private company will solve the error rates and waste. If there is, I wish the governor would show us and Hoosier taxpayers who will be footing the bill for this risky privatization scheme," he said.

"Until he provides real numbers and data, his assertions that privatization will cure all the ills in the welfare system is just rhetoric to justify selling off more state services to corporations looking to profit from those Hoosiers who most need our help."

Athens Call Center Still on Target

Cristin Ross
Athens Review

5/23/2006

Despite running into problems at its San Antonio center, Accenture is hoping to open the doors to its Athens office this summer.

Reports of unexpectedly long wait times and inadequately trained operators had the Health and Human Services Commissioner Albert Hawkins announcing in early April, the project would be postponed, but that won't affect the Athens center.

"I haven't heard anything on postponing the Athens center," Accenture spokeswoman Stephanie Goodwin said on Friday. "The problems we're having in San Antonio are more of a technical variety, and not as severe as first thought. We feel pretty confident we can work through those problems soon.

"With the volume of calls we have been getting, we still absolutely need the Athens center."

According to Accenture's Web site, www.accenture.com, the Bermuda-based company is "a technology consultant and systems integrator."

The company was recently chosen to privatize part of the state's social services, like the Children's Health Insurance Program, Medicaid, Food Stamps, Temporary Assistance for Needy Families and long-term care. The state announced plans last year to replace 99 of its 310 eligibility offices with four centers to be run by Texas Access Alliance.

These centers allows people to apply for various state program benefits over the phone, online and in person. Midland's center went on line in January - the same time several changes to the application process and in eligibility requirements went into effect.

The center in Athens has been in the works since December 2005, when the company chose Athens over three other cities, including Longview.

"This is wonderful for this community," Athens Economic Development Corporation Executive Director Herbert Gatlin said. "This caliber of company and its affiliates promises to bring good jobs with good pay to the area.

They are a first class group."

The AEDC helped bring the center to town by offering incentives like job incentives and helping fund the massive remodeling of the building on Corsicana Street that formerly housed the K-Mart retail store.

"The building is coming along nicely," said AEDC office administrator Mary Waddell, who toured the building last week.

Renovations aren't complete as yet, as officials said they still wanted to paint the building exterior to obliterate some graffiti on one side of the building.
"I think they want to wait on that until they put up the security fence,"
Waddell said.

Various manager and customer service representative positions are already being filled through the East Texas Workforce Center. Anyone interested in applying may contact the center, 903-677-3521, before June 5.