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Lawmakers want state's $899 million Accenture contract cancelled
July 12, 2006

A bipartisan group of 60 Texas House members have called for the cancellation of the state’s $899 million public benefits eligibility contract with Bermuda-based Accenture.

Written by Steve Taylor, Rio Grande Guardian

AUSTIN - A bipartisan group of 60 Texas House members have called for the cancellation of the state’s $899 million public benefits eligibility contract with Bermuda-based Accenture.

In a letter sent Wednesday to Health and Human Services Commission Albert Hawkins, the lawmakers, including many from the border, say they were “alarmed” to learn that dozens of needy Texans “slipped through the cracks,” due to an administrative “blunder” by the Texas Access Alliance, a consortium of companies led by Accenture.

Last month, the TAA admitted it had faxed highly sensitive Medicaid and food stamps applications to a “black hole” in Seattle.

The lawmakers say they are also concerned that 12,000 backlogged cases have been returned from privatized call centers to local state eligibility offices, requiring state employees to complete the work that Accenture was supposed to have done.

“We ask you to cancel the contract with Accenture for non-performance and commit the remaining resources to rebuild the human services eligibility system that, as little as two years ago, was among the best in the country,” the lawmakers wrote.

“In addition, we ask you to consider demanding that Accenture return some of the payments for which Texas has not received the products and/or services as promised.”

Among the border and South Texas lawmakers to sign the letter are Reps. Pat Haggerty, R-El Paso, Yvonne Gonzalez Toureilles, D-Alice, Joe Pickett, D-El Paso, Tracy King, D-Eagle Pass, Pete Gallego, D-Alpine, Juan Escobar, D-Kingsville, Richard Raymond, D-Laredo, Armando "Mando" Martinez, D-Weslaco, Norma Chávez, D-El Paso, Ryan Guillen, D-Rio Grande City, Abel Herrero, D-Robstown, Aaron Peña, D-Edinburg, Paul Moreno, D-El Paso, and Chente Quintanilla, D-El Paso.

The lawmakers say they agree with Hawkins’ decision to delay rollout of the Call Center/IEES/TAA plan and thank the commissioner for rescinding the layoffs of state employees for at least a year and returning 1,000 eligibility full time employees to local offices.

“We believe it was a prudent decision, in order to guarantee services are being provided, to return the work being done by the call centers to state employees in the local offices,” the lawmakers write.

“Your efforts to head off this major disaster for Texas health and human services delivery are worthy. We feel this is a first step towards rebuilding quality services and a system that works.”

The lawmakers said it was unclear what work, if any, is currently being undertaken by Accenture, or what, if any, "deliverables" have been delivered as promised. They note reports that HHSC has already paid Accenture $91 million even though the call center program is fraught with operational problems.

“As you well know, we are in difficult budgetary times. Every dollar we spend on our health and human services is precious. We do not have the luxury of throwing good money after bad,” the lawmakers told Hawkins, in the letter.

“As recently as two years ago, Texas’ delivery of state and federal human services programs was among the best in the nation. We consistently received enhanced funding from the federal government for timeliness and accuracy in our delivery of the critically important food stamps, Medicaid, TANF, and CHIP programs.”

Last November, TAA began processing statewide applications for Children's Health Insurance Program (CHIP) and Children's Medicaid. In January, TAA began processing local applications in Travis and Hays Counties for other key programs such as food stamps and Temporary Assistance for Needy Families (TANF).

These dates correspond with the beginning of significant decreases in both CHIP and Children's Medicaid enrollment and huge backlogs of applications for food stamps and TANF in Travis and Hays Counties.

In May, state Sen. Eliot Shapleigh, D-El Paso, asked Comptroller Carole Keeton Strayhorn to conduct a “comprehensive audit and performance review” of the TAA contract.

“I am concerned that TAA may not be living up to the contractual obligations contained in their $899 million contract with the state,” Shapleigh wrote, in a May 10 letter to Strayhorn.

“Through conversations with constituents and community-based organizations, I fear that TAA may not be adhering to the policies and procedures in place regarding the enrollment and renewal processes for these programs.”

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