A coalition of statewide organizations believe the privatization of the Family and Social Services Agency is causing a crisis for Indiana residents dependent on Medicaid and food stamps.

At a press conference Thursday at the Senior Citizen Center in Kokomo, the groups called for the rehiring of state case workers, as well as the termination or renegotiation of the contract with two private companies.

Indiana signed a 10-year, $1.16 billion contract with IBM and ACS to handle the applications for Medicaid, food stamps and Temporary Aid to Needy Families.

The modernization of FSSA started with a pilot program in 12 counties, including Howard County, and has now grown to 53 counties. The modernization resulted in case workers hired by the state given the opportunity to work for IBM/ACS.

Instead of going to a county FSSA office and being assigned a case worker to determine eligibility, those seeking help now submit applications online or by telephone.

“We’re concerned about people losing services,” said Elmer Blakenship, president of the Indiana Alliance for Retired Americans. “People all over the state are being deprived of services.”

Blakenship said people who were already approved for services had to re-apply when documentation was lost or misplaced.

“The system can be fixed,” he said, “but it will be hard to get the case workers back.”

Volunteer Dan Skinner said the call center in Marion is not being managed well by the two companies. He said callers are placed on hold for lengthy periods, phone appointments are not kept and the operators taking the calls don’t have decision-making authority.

“The FSSA is denying there are any problems,” he said, “they believe everything is going well.”

Skinner said the system is failing those most in need and is creating a crisis.

Nancy Griffin, a board member with United Senior Action, explained a problem is that applicants talk to a different person every time they call and the people answering the telephone are not knowledgeable.

She said the groups are not opposed to modernization of the system but don’t know why the privatization took place.

“People around the state tell us they just want their case worker back,” Griffin said.

For people about to submit an application by telephone or computer the system is fine but for those residents with disabilities, there is a need for a local office, she said.

“Case workers made the system work,” Griffin said.

John Cardwell, chairman of the Indiana Home Care Task Force, said to fix the system, the state needs to immediately begin the process of hiring case workers and to put money into local non-profit agencies that have been assisting residents with the application process.

Cardwell said in the 12 counties in the pilot program which included Kokomo, Anderson, Muncie, Marion while the unemployment rate increased the demand for food stamps declined by 11 percent.

He said the food stamp applications should increase when unemployment climbs and added the decline in food stamps is creating demand on local food pantries.

FSSA spokeswoman Elizabeth Surgener told The Associated Press on Tuesday the number of households receiving food stamps statewide is up. Last year, the number of households receiving food stamps was 494,778. This year, it is 556,646 households, she said.

Surgener said the new system increases flexibility and offers more options to serve the needs of clients. If they need the assistance of a caseworker, “they still have that option.”

Surgener said many community agencies have volunteered to help clients in navigating the new system.

Skinner disputed that and said the local not for profits are overwhelmed and can’t provide the needed assistance. He said that network in Howard County has collapsed with each averaging 40 calls per day.

Ken de la Bastide can be reached at (765) 454-8580 or via e-mail at ken.delabastide@kokomotribune.com