Missouri social service officials have told a House panel the state could save $28 million annually by moving people from welfare programs onto federal disability payments.
The Republican-led committee is investigating a contract that pays Boston-based Public Consulting Group $2,300 for every Missouri resident moved onto disability payments.
Officials with the Department of Social Services told the panel Monday the contracts saves money for the state and assigns people to the appropriate program.
People on welfare are required to engage in job-seeking activities. Committee Chairman Rep. Jay Barnes, of Jefferson City, says people receiving disability payments are unlikely to seek work because it would negatively affect their federal benefits. Barnes called for the hearing in early April.