Eligibility Workers Know You Can’t Outsource People’s Lives

Eligibility workers are a safety valve for California’s safety net, making sure people qualify for vital services and protecting taxpayers. Now California’s governor has proposed to privatize eligibility services. That’s why it’s important to look at the negative experience in states that have tried it.

“You can’t outsource people’s lives. Eligibility workers know our clients, we know the rules, and we know how to get results,” said Rey Ybarra, Santa Barbara County Eligibility Worker.

In Indiana, Texas and Florida, children and elderly lost care and promised cost-savings evaporated due to high error rates. “It was a flawed concept that simply did not work out,”  Indiana Gov. Mitch Daniels said after he canceled the state’s contract with IBM on Oct. 15, 2009.

California hasn’t gone that far — Gov. Schwarzenegger has proposed it, and the Legislature has ordered further study that may not be complete before he leaves office next year.
But it’s important to know why privatizing our work is the wrong choice, and why eligibility work matters.

Track Record of Trouble: Others States’ Experience with Eligibility Outsourcing

Florida
Implemented: 2005
Cost-savings: Child welfare costs increased
Impact on families: 40 percent of cases were riddled with mistakes
Employee impact: 3,099 state employees lost their jobs, a 43% reduction
Result: State privatized child welfare services applications

Texas
Implemented: 2006
Cost Savings: Accenture promised $600 million in savings that was never realized
Impact on families: 120,000 children lost health insurance due to errors
Employee impact: State employees lost their jobs and were replaced by contract call center workers
Result: Contract terminated

Indiana
Implemented: 2008
Cost Savings: No cost savings reported due to errors and delays
Impact on families: 1 in 5 food stamp cases was mishandled
Employee impact: 1,500 state workers became employees of private contractor
Result: Contract camceled