A little transparency with that billion dollars please

The South Bend Tribune has an editorial asking for some transparency in the Medicaid eligibility privatization process, the contract for which is estimated to be worth about a billion dollars. Mitch Roob originally had FSSA on track to let the contract this summer, but Gov. Daniels stepped in, apparently because of appearances of impropriety. The two competing vendors are ACS and IBM. My recollection is that IBM has had some significant problems in satisfying its obligations under a similar contract in Texas. And ACS was Roob’s former employer, and with a contract this large, that creates at least the appearance of a significant conflict of interest.

Gov. Daniels put the brakes on this summer and appointed a panel to take a look at the process. Also, the Department of Agriculture which handles the food stamp program, decided to take a look. If all goes smoothly these groups will be done and could greenlight the contract as early as December — before the next session of the General Assembly convenes in January. The South Bend Tribune opines that this would do a disservice to the state, and says that the General Assembly ought to be taking a look at the privatization contract and that all decisions pertaining to the billion dollar contract ought to take place under the full glare of public scrutiny. If this plan is so good, what does Gov. Daniels have to fear from the involvement of the legislature?

Well, for starters, that they might say “no.” And, of course, there are different metrics as to what constitutes a “good.” Are we talking “good” for Medicaid recipients? “Good” for taxpayers? Good for ACS? “Good” for particular individuals?

I agree that the legislature ought to be involve with this significant allocation of taxpayer dollars. But, Gov. Daniels has plenty to fear if the legislature gets involved.