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Federal Government Giving Indiana Food Stamp Program $1.65 Million Bonus

Last updated on Friday, June 17, 2011

(UNDATED) - The federal government is giving Indiana’s food stamp program a $1.65 million dollar bonus for improved payment accuracy.

The state was second best in the nation in cutting the percentage of recipients who received too many or too few benefits.

Indiana's system was troubled. Indiana hired a private company in 2006 to process applications for food stamps, welfare cash assistance and Medicaid, but the federal government told Indiana it had to do better after error rates rose.

The state canceled the contract and sued IBM, saying it failed to give Hoosiers timely, accurate help.

IBM countersued, contending the state underestimated the number of Hoosiers who would need help.

Kevin Concannon, USDA Under Secretary For Food, Nutrition and Consumer Services, says "Indiana's troubles go back not so much the recent issues, but when they moved to the modernization.

That's where I think, they had some issues even before that, but i think they were exacerbated with the moderation."

The Indiana Family and Social Services Administration says the state has since improved in timeliness, and in backlog reduction.

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