LAS CRUCES—A year-old scandal involving alleged systemic fraud with the state’s management of federal food aid benefits was the elephant in the federal courtroom Thursday. Both Kenneth Gonzales, a federal district judge, and Lawrence Parker, a court-appointed “special master” who is tasked with guiding the New Mexico Human Service Department (HSD) in its federal compliance with Medicaid and Supplemental Nutrition Assistance Program benefits, alluded to the scandal at the hearing. “What nobody wants to see, and you especially, is a culture that allows this to happen,” Gonzales told HSD Secretary Brent Earnest. Parker emphasized that “many of those same people” who were alleged in 2016 to have instructed HSD employees to falsify SNAP applications to meet federal quotas “are still in place” at the department.[perfectpullquote align=”right” cite=”” link=”” color=”” class=”” size=””]No ads. No clickbait.
More than one year after three top state officials refused to answer questions in federal court about fraud allegations and nine months after a federal judge held their cabinet secretary in contempt of court, the state Human Services Department (HSD) appears to still be seriously mishandling how it processes federal benefits to New Mexico’s poor. [perfectpullquote align=”right” cite=”” link=”” color=”” class=”” size=””]No ads. No clickbait. Just news. [/perfectpullquote]This includes an apparent department directive instructing caseworkers to limit interviews with those enrolled in and seeking federal benefits and lie to their superiors about it.
Tens of thousands of Medicaid recipients in New Mexico are not receiving their health benefits on time, according to numbers from state government. As of February of this year, more than 48,000 Medicaid cases up for renewal are not being processed by the state Human Services Department (HSD) on time, according to a federal court filing in April citing HSD’s own numbers. And that number of Medicaid renewal delays has only grown to more than 59,000 as of May 10, according to Maria Griego, a staff attorney with the New Mexico Center on Law and Poverty. “They’re pretty bad,” Griego said of the delays. While the number of New Mexicans who haven’t received their Medicaid benefits on time has been expanding, HSD erased a large part of the backlog of renewal applications for the federal Supplemental Assistance Nutrition Program (SNAP), formerly known as food stamps.
In April, five employees of the state agency that processes key federal benefits to the poor made explosive testimonies in court—that their bosses instructed them to doctor emergency food aid applications to hurt the very people they’re supposed to help. The following month, four more Human Services Department employees added their voices to the allegations. Then, three top state officials were called to the stand and pleaded the Fifth, refusing to answer nearly 100 total questions about their role in the scandal. Previously: Top ten stories of 2016: 10-6; #5: NM Dems buck national trend, retake House; #4: Demesia Padilla resigns; #3: AG clears final behavioral health providers; #2: State budget situation worsens
“In my opinion, we’re cheating those families,” Angela Dominguez, one of the HSD employees, said in her court testimony. The underlying question next became, why?
Media coverage of planned tax legislation has so far focused on one hot-button topic of the proposal—reinstating a state tax on food. Santa Fe Archbishop John C. Wester and advocacy groups like New Mexico Voices for Children have vocally opposed the idea. But the two state representatives behind the proposal have not actually filed any legislation on the matter for the session that begins in January. Legislators could begin introducing bills on Dec. 15.
The state wants to extend a waiver that allows the state to waive work requirements for federal food benefits. The Santa Fe New Mexican reported the news of the proposed waiver coming from the embattled state Human Services Department. The department previously sought to reimplement the work rules for the Supplemental Nutrition Assistance Program, or SNAP, but a federal judge blocked the request. Earlier this year, a federal judge slammed HSD for doing the work of creating new rules and procedures for the work requirements while not working toward compliance with a decades-old consent order. Last week, a federal judge named a Texas administrator as a “special master” to oversee the department’s food benefits functions.
A federal judge appointed a Texas government official to serve as the “special master” to help a New Mexico state agency come into compliance with federal law. Lawrence M. Parker, who has worked for the Texas Health and Human Services Department, will be responsible for essentially fixing the New Mexico Human Service Department’s food aid and Medicaid case processing. The appointment comes as part of a decades-old lawsuit that alleged HSD wasn’t properly processing federal aid to New Mexicans. While that lawsuit, known as Hatten-Gonzales, resulted in a consent decree in 1990, an Albuquerque-based nonprofit argued in court this year that the state wasn’t properly following guidelines laid out under the consent decree. The New Mexico Center on Law and Poverty also argued for the federal court to appoint an independent monitor to oversee the state department’s Income Support Division, which processes Medicaid and Supplemental Nutrition Assistance Program (SNAP) benefits.
The state and federal government have “ramped up their investigations” of the New Mexico’s alleged widespread falsification of food aid applications, according to the union that represents the state’s case processors in the Human Services Department. And the American Federation of State, County and Municipal Employees, or AFSCME, Council 18 question whether investigators are targeting “frontline workers” more than the administrators at HSD for responsibility in the scandal. An online post from AFSCME also claims that the investigation is criminal and advises all union members to “contact your union representative before participating in any interview.”
“We understand the importance of getting to the bottom of this swamp,” the AFSCME post reads. “It will be unacceptable should frontline workers be scapegoated of held responsible for wrong-doing [sic] that federal court proceedings revealed was directed from top levels of state government.”
Reached by phone, representatives from AFSCME declined to comment on the matter further. A spokesman from HSD also didn’t return requests to comment Tuesday afternoon.
A month after five state of New Mexico employees testified in federal court that they were instructed to falsify emergency food aid applications, another lawsuit filed in Las Cruces district court made strikingly similar allegations. But instead of directing her allegations toward state government, Lorraine McCullough directed her allegations toward SL Start and Associates, a private, Washington state-based company that bills itself as a health provider for adults and children with developmental disabilities. That’s because this company is contracted with the state Human Services Department to manage the federal Temporary Assistance for Needy Families Program (TANF). TANF is the program most commonly called welfare. Locally, the program is called New Mexico Works.
A federal judge has ordered an independent “special master” to oversee the division within a state department that deals with food and medical assistance for the poor. On Tuesday, federal judge Kenneth Gonzales formally accepted a July proposal from federal magistrate judge Carmen Garza to appoint a special master. The special master will oversee the processing of Medicaid and Supplemental Nutrition Assistance Program benefits at the embattled state Human Services Department. Gonzales also gave the special master the power to hire consultants who “will have the same access the staff, records, persons, facilities or sites of services that … the special master determines is necessary.”
This special master will be tasked with bringing HSD’s benefits processing practices into compliance with federal law. Only the federal court will have decisionmaking power over the special master, who is yet to be determined.