Welfare pact: Perform or pay the price / State's privatization plan would penalize failure to meet standards
Source: By Theodore Kim, Indianapolis Star (IN), December 4, 2006
Indiana's proposed welfare privatization contract with IBM and its partners includes penalties for mistakes in benefit claims and even for keeping callers on hold too long. But experts say making sure the companies deliver on their promises won't be easy. Monitoring the private consortium's performance will hinge largely on the IBM group's ability and trustworthiness in reporting accurate data to the state, the experts say. They question whether grievances about poor service will reach state officials. More broadly, these experts worry that the pressure for IBM to generate a profit while fulfilling exacting performance targets might compel the company to cut corners.