State may lose $1M in funding due to botched benefits system

PROVIDENCE, R.I. (AP) - Ongoing problems with Rhode Island’s benefits computer system could cost the state nearly $1 million in federal funding.

WPRI-TV reports the U.S. Food and Nutrition Service notified the state Monday it could lose $913,830 in funding for food stamps as soon as May 17.

State officials say they can still avoid the penalty. They also believe the contractor responsible for the system, Deloitte Consulting, would have to cover the cost.

The state launched the Unified Health Infrastructure Project, or UHIP, to handle applications for benefits such as food stamps and Medicaid. It has been plagued with problems since its 2016 launch.

The federal agency’s letter, sent to the state Department of Human Services, says the state has failed to make sufficient improvements to the system.

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Information from: WPRI-TV, http://www.wpri.com