Medicaid privatization falls on its face

Indiana Gov. Mitch Daniels (pictured here) has a reputation for turning everything he touches into shit, and this scandal is no exception.

In 2006, Daniels signed a 10-year contract worth over $1,000,000,000 with private companies led by IBM to take over the task of determining eligibility for public benefits programs. These include programs like Medicaid and food stamps that serve the poor.

Almost immediately after Disaster Daniels inked this deal, these programs crumbled beyond recognition. In most counties, Medicaid applicants who previously would have had a qualified caseworker to review their case now have to use an automated phone number that shuffles their case among staffers who are otherwise unfamiliar with the applicant.

As a result, qualified Medicaid applicants get rejected. In at least one instance, this occurred after the private contractors lost all the applicant's paperwork - and blamed the applicant.

Under the new system, Indiana also now has one of the worst rates in the country for improperly denying food stamp applicants. While Indiana still provides emergency food assistance in a timely manner 62% of the time in counties that haven't yet switched over to the new privatized system, the rate is only 44% in the privatized counties.

Legislators are now demanding answers. But Disaster Daniels isn't known for answers but for excuses.

(Source: http://www.indystar.com/article/20090126/OPINION12/901260321/1002/OPINION)