(THE STATE OF ILLINOIS) - A For-Profit Company’s $77 Million Contract with the State of Illinois Will End Next April  - and the Work Placed Back Into the Hands of Public Employees – Following a Ruling Sought by the American Federation of State, County & Municipal Employees (AFSCME) Council 31, it was Announced This Week.

The Council Contended the State Violated Its Collective Bargaining Contract With the Union by Out-Sourcing Work Reviewing Medicaid Eligibility to Maximus Health Services of Virginia. 

During Legislative Hearings Held in September, AFSCME Demonstrated the State Would Save More Than $18 Million Annually by Returning the Out-Sourced Work to AFSCME-Represented State Employees.

The State Acknowledged As Much, Since the Maximus Call-Center Workers Performed Casework that Duplicated the Functions State Workers Were Required to Repeat Under Federal Medicaid Rule Law.

In June, an Independent Arbitrator Sided With AFSCME and Ordered the Contract Canceled.

The Cancelation Takes Effect on April 30th.

“The Arbitrator’s Order is a Victory for Illinois Taxpayers,” Council 31 Executive Director and AFSCME International Vice President Henry Bayer said. “Wasteful Spending on a Private Contract Will Be Eliminated.  Trained Professional Caseworkers Will Replace Unqualified Call Centers.  State Government Will Ensure that Medicaid is Available to Those Who Need It, and Will Be Cut Off From Those Who Don’t.”

The Arbitrator’s Decision Requires the State to Hire Enough Caseworkers to Ensure the Work of Eliminating Ineligible Medicaid Clients Will Be Handled In-House by April.

However, Maximus Will Still Continue to Provide Some Software and Support Services Until June 2015.

AFSCME Council 31 Editor’s Note: You Can Read More About This Victory Over Out-Sourcing Here.  You Can Directly View This Labor News Story At:

http://www.afscme.org/blog/outsourcing-defeated-costly-contract-ending-in-illinois