Legislators could soon order a freeze in the privatization of food stamp eligibility determinations. Social services advocacy groups want them to go farther.

A coalition of labor-backed groups and advocates for the poor and senior citizens has opposed the privatization from the beginning. Now those groups want legislators to roll back the privatization in the 59 counties where it's already taken effect, and order an audit of the IBM-led consortium.

Former Vigo County welfare director Glenn Cardwell says one in five people denied food stamps the last six months shouldn't have been, the fourth worst rate in the country.

That error rate appears to be an increase from before privatization, but it's only part of the total error rate. Some people get benefits who shouldn't have, or receive incorrect amounts.

And opponents say they don't have data on welfare and Medicaid error rates. The state says the Medicaid error rate was more than one in three before the consortium took over, while the welfare rate was one in four.

The state has acknowledged some snags in the transition to the consortium, and froze the rollout last June while it works out the kinks. In February, Governor Daniels reassigned Department of Administration Commissioner Carrie Henderson to the Family and Social Services Administration as director of contract compliance, with oversight of the eligibility contract her primary responsibility.

Cardwell and other opponents say it's suspicious that Indiana's Medicaid and food stamp rolls are rising more sharply in the counties where FSSA still determines eligibility itself than in the IBM counties. They argue that's an indication the IBM group is quicker to issue denials.

The non-IBM counties include the state's two most urban counties, Marion and Lake, as well as the northern Indiana counties hardest hit by soaring unemployment. Cardwell acknowledges the high jobless rates in Elkhart, St. Joseph and Lagrange Counties, but contends when all counties are included, the IBM region stretching from Monticello to Winchester has been even worse off.

 

FSSA spokesman Marcus Barlow says there's no timeline for resuming the changeover, but says claims service has gotten worse are groundless. He says a majority of customer complaints are in the counties where the rollout is on hold.