Benefind contract draws fire at hearing

►FRANKFORT, Ky. - The launch of a new state public benefit system drew harsh criticism Thursday from lawmakers, with one calling for a state attorney general's examination of the contract with Deloitte Consulting, the company that built the $100-million system known as benefind.

"It seems like our most vulnerable populations are the ones who have paid for the shortcomings," Sen. Danny Carroll, a Paducah Republican, said of the system that caused massive disruptions in public benefits such as Medicaid and food stamps earlier this year. "Maybe that's something the attorney general should take a look at."

Carroll, co-chairman of the joint House-Senate Program Review and Investigations Committee, which held Thursday's hearing, suggested the attorney general could review whether Kentucky could recoup any of the funds it paid Deloitte and whether the contract offered sufficient protection to Kentucky in light of problems with the launch.

A spokesman for state Attorney General Andy Beshear, Terry Sebastian, said Thursday that the office had not received any official communication about reviewing the benefind contract but "we strive to be responsive to state lawmakers."

Thursday's hearing was the first time lawmakers have publicly scrutinized benefind since it was launched Feb. 29. The massive computer program, meant to serve as a one-stop shop for public benefits, was several years in the making and initiated under the administration of former Gov. Steve Beshear.

Deloitte principal Kevin Pollari, a representative of the global technology and consulting firm, defended Deloitte's work and said company officials are working with Kentucky to fix problems and improve the system.

"We've stepped up the best we can," Pollari told the committee. "We're continuing to step up."

Carroll wasn't satisfied. "I appreciate that but it still doesn't negate the shortcomings," he said.

Some lawmakers said they had been inundated with complaints from people who lost health coverage, food stamps or other important public assistance.

►MORE: Kentucky sets up war room to ease benefind crunch

Rep. Jeff Taylor, a Hopkinsville Democrat, wondered why the state didn't have a contingency plan when state officials realized soon after the launch of benefind that it was resulting in widespread problems.

"We gambled with health and human safety and in some cases, human lives," Taylor said. "It's not acceptable. We didn't have a plan B, and I want to know why."

State officials who testified didn't dispute Taylor but said in the early days of the rollout, the scope of the problems wasn't immediately apparent to new members of the administration of Gov. Matt Bevin, who took office in December.

As they realized the seriousness of the problems, officials with the Cabinet for Health and Family Services threw all their energy into solving them and getting the system to work, said Tim Feeley, deputy secretary of the cabinet.

"The program was flawed, and the cabinet has worked diligently to improve it," he said.

Bernard "Deck" Decker, executive director of the cabinet's technology services, provided similar testimony.

"It probably took us a month and a half to get an idea of the magnitude of how bad this was," Decker said. "It was extremely bad."

Problems solved?

Decker said many of the benefind problems have been resolved.

A backlog of some 50,000 cases waiting to be processed has been cleared, he said.

Hours-long waits on hold with a state call center, a complaint of many consumers trying to clear up problems with benefits, have been cut to an average of 20 to 25 minutes, Decker said.

A "rapid response team" was created to more quickly resolve more complicated or urgent problems, he said.

And he said state workers have reviewed and addressed some 200,000 letters generated by the system - many in error that told consumers they were losing benefits or demanding information already provided, such as proof of income or citizenship.

Two health advocates who spoke Thursday agreed that many of the problems have been corrected.

►MORE: State: New benefind system a costly experiment

But others persist. Some consumers are stilling getting letters with misinformation or having difficulty accessing benefits, said Cara Stewart, a lawyer with the Kentucky Equal Justice Center.

"Those letters are still going out," Stewart said.

Stewart said while it's true the state has cut wait times for callers seeking help, that doesn't mean all callers are getting help faster. Often when she calls on behalf of clients, Stewart said, the state worker she reaches can't help with a specific problem and puts her on hold to wait for someone else.

"They send me right back to the end of the queue," she said.

Emily Beauregard, executive director of Kentucky Voices for Health, acknowledged the state has made strides in correcting some of the initial problems but "there are still many areas for improvement."

One lawmaker rose to the defense of state officials overseeing benefind.

Sen. Stephen West, a Paris Republican, said the system has the potential to operate more efficiently and save the state money despite current questions and criticism.

"I think you guys are to be commended," he said to the cabinet officials. "There would have been a lot of second-guessing of Dwight D. Eisenhower when he stormed Normandy."

Contact reporter Deborah Yetter at (502)582-4228 or at dyetter@courier-journal.com.