Hybrid Welfare Eligibility System – Indiana

Indiana, IBM trade suits over welfare contract, Associated Press, May 13, 2010, Wall Street Journal: “Indiana and its former partner in welfare privatization, International Business Machines Corp., sued each other Thursday over the technology giant’s canceled 10-year, $1.37 billion contract to automate the state’s intake for food stamps, Medicaid and other benefits. Both lawsuits were filed in Marion County courts in Indianapolis. In its lawsuit, the Indiana Family and Social Services Administration is seeking to recover the $437.6 million it paid IBM through Jan. 31, plus the costs of any third-party lawsuits, federal penalties, and state employee overtime that it incurs as a result of its association with the Armonk, N.Y., company. The state is seeking triple damages, or more than $1.3 billion, as it is entitled to do under state law. It accused IBM of intentionally denying benefits to clients to make its performance appear better and giving the state agency false and misleading information…”