1 / 22

2010 National UI Integrity Professional Development Conference

2010 National UI Integrity Professional Development Conference. Improper Payments Panel Discussion April 20, 2010 Dale Ziegler Deputy Administrator Office of Unemployment Insurance. UI Improper Payments & Integrity Efforts are Mature. 1940’s Basic Controls Created 1950’s

derron
Download Presentation

2010 National UI Integrity Professional Development Conference

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 2010 National UI Integrity Professional Development Conference Improper Payments Panel Discussion April 20, 2010 Dale Ziegler Deputy Administrator Office of Unemployment Insurance

  2. UI Improper Payments & Integrity Efforts are Mature • 1940’s Basic Controls Created • 1950’s • Standard for Fraud and Overpayment Detection issue • BPC Branch created within OUI • 1970’s Quality Appraisal Started • 1980’s Random Audit & Benefit Quality Control • 1990’s Benefit Accuracy Measurement • 2000’s Denied Claims Accuracy

  3. Improper Payments by Major Program

  4. Executive Order 13520UI Supplemental Measures • OMB guidance requires agencies with high-priority programs to develop new measures with semi-annual targets that: • Focus on high risk areas within the high-priority program, for example components of the annual rate. • Identify root causes of error that agencies can fix through corrective actions.

  5. UI Supplemental MeasuresTargets

  6. Causes of UI Overpayments

  7. Distribution of BYE Overpayments

  8. Benefit Year Earnings Discussion: • Identify the causes for these errors • Develop short-term solutions • Develop canned messages for use on the state web site or telephone filing system to inform claimants that once they have returned to work they are no longer eligible to receive UI. • Other communication vehicles

  9. State Information Data Exchange System To reduce improper payments due to separation issues • 6 states facilitated the implementation of State Information Data Exchange System (SIDES) -- an automated employer response system to standardize the collection of information on employee separations from employers and third-party administrators. • SIDES in production as of January, 2010 • Currently, UT and ADP are using SIDES

  10. SIDES Web Services and Website

  11. SIDES Exchange Formats • Additional Formats Under Consideration: • Wage Verification (two way communication) • Monetary Determination • Benefit Chargeback Notice • Nonmonetary Determination • Appeal Decision • Others….(File an Appeal, Appeal a Charge, submit Wage Records)

  12. ES Registration Errors ES registration errors accounted for nearly 15 percent of total overpayments nationally ($835 million) in FY 2009, these errors are concentrated in a handful of states. This cause is a controllable source of improper payments. Target the few states that account for over two-thirds of total overpayments attributable to ES registration.

  13. Root Causes of ES Registration Errors • The leading causes of ES registration errors are: • Inadequate communication of registration requirements to claimants. • Technical issues in registering UI claimants in ES management information systems.

  14. ES Registration Error Rates ST Pct of Pct of Est. Amount $ Paid $ OP -- ------ ------ ------------ LA 19.45% 48.42% $75,930,910 IN 17.20% 57.39% $318,511,398 NM 16.29% 63.51% $49,624,064 SC 13.58% 69.08% $120,670,928 AL 6.58% 48.11% $41,208,100 TN 4.62% 43.96% $44,001,106 AK 4.42% 35.92% $7,064,495 NE 3.86% 27.72% $6,663,067 MS 3.20% 25.25% $9,766,005 WV 3.18% 42.74% $9,560,299

  15. Supplemental Budget Requests (SBRs) • $10 Million - IT Integrity Projects • Focus on Root Causes of Overpayments (example: SIDES) • $9 Million - Performance Improvement Projects • Focus on Core Measures, Data Validation • Matching Funds for Projects • Guidance (UIPL) issuance in May, 2010

  16. Proposed Integrity Act • States to use a small % of UC overpayment and delinquent contributions to prevent/detect/recover improper payments and misclassification/delinquent employer contributions. • Penalties due to claimant fraud. • Employers required to report start date of new hires to NDNH. • Expands use of TOP for certain non-fraud overpayments • Prohibits non-charging under certain circumstances.

  17. Treasury Offset Program (TOP) • Federal law was amended in 2008 to permit states to recover certain UC debts due to fraud from Federal income tax refunds under the Treasury Offset Program (TOP). • OUI explored the possibility of contracting for TOP services from other federal agencies.

  18. Treasury Offset Program (TOP) • Department of Treasury informed OUI that Treasury’s TOP system can be used by states for the recovery of UC debts. • OUI will provide additional guidance to the states regarding the TOP implementation in June 2010. • Goal for first states to begin in December 2010.

  19. Questions?

More Related