UI Integrity/ Improper Payments Joint Federal/ State Task Force

October 14, 2011

Mission Statement:

Prevent, Detect, and Materially Reduce Improper Payments

Mission Objective:

Reduce Improper Payments to less than 10%

LWC UI Integrity

Integrity Initiative Developed in 2010• Plan developed and management structure put in place

to execute plan• Reduce the percentage of improper payments to below

10%

Implementation of comprehensive and detailed plan began in 2011• Preliminary results are encouraging

LWC Overview

• To date in 2011, LWC has reduced the improper payment rate by 47%– 89% Improvement in work registration– 43% Improvement in separation Issues– 38% Improvement in work search– 19% Improvement in BYE

• Addressed work registration through improved automation

• Implemented automated stops related to employer separation information (77,110, 152)

Successes to Date

• Established an employer liaison and UI Employer Advisory Committee to improve education and outreach

• 46 fraud arrests since April 2011 for the UI Fraud Task Force in partnership with the Attorney General

• Established UI Integrity Task Force

• Awarded $2.397 Million through Integrity SBR

Successes to Date

Benefit Year Earnings (BYE)

Root Causes Identified:• Agency Causes

– Lack of automated process for NDNH, Cross-match and Separation Notices

– Insufficient detection of errors during adjudication process

– Inadequate understanding of comprehensive fact finding by claims processing center and its affect on benefit payments

• Claimant Causes

– Not reporting employment separation

– Not reporting earnings

– Limited understanding of claimant responsibilities

• Employer Causes

– Failure to report hires and rehires to NDNH

– Failure to submit separation notices

– Limited understanding of employer responsibilities

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Areas of National Focus

Benefit Year Earnings (BYE)

Planned action(s) to address:• Automate NDNH cross-match and follow-up activities

• Utilize predictive analytics to target potential fraud and overpayments in coordination with the development of a data warehouse with state agency partners

• Review Benefit Payment Control (BPC) staffing and organization and provide additional capacity as needed

• Collaborate with the USDOL, Office of Inspector General, and Louisiana Attorney General’s Office to increase prosecution efforts and highly publicize those efforts

• Additional communication, messaging, and outreach as described in communications strategy

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Areas of National Focus

Benefit Year Earnings (BYE)

Principal Milestones:• 10/15/11 - Additional temporary staff hired for BPC

• 12/31/11 - Letters to employers and claimants regarding NDNH hits

• 12/31/12 - Final implementation of NDNH automation

• Ongoing - Full implementation of predictive analytics and social networking software

• Quarterly - Reports regarding arrests and prosecution of fraudulent claims activities

Areas of National Focus

Separations

Root Causes Identified:

• Agency Causes

– Insufficient automation– Inaccurate indexing of documents – Incorrect determinations– Procedural errors

• Claimant Causes– Separation/employment not reported– Incorrect/inadequate information provided for determination

• Employer Causes– Failure to submit separation notice– Failure to respond to requests for information and/or provide adequate backup

documentation– Inadequate information from third party representatives

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Areas of National Focus

Separations

Planned action(s) to address:

• Implement SIDES

• Implement a web-based employer portal to accept wage records electronically

• Automate and track ALJ Reversals

• Utilize the Claims Review Team to reduce application errors and support fact-finding activities

• Implement Experian QAS software to improve data validity

• Establish ongoing Peer Reviews

• Implement Formal Supervisory Reviews

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Areas of National Focus

Separations

Principle Milestones:• 12/31/12 - Implementation of SIDES

• 3/1/2012 - Implement a web-based employer portal to accept wage records electronically

• 7/1/2012 - Automate ALJ reversals

• 1/1/2012 - Implement Experian QAS software to improve data validity

• Utilize the claim review team to reduce application errors and support fact-finding activities

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Areas of National Focus

Work Search Issues

Root Causes Identified:

• Agency Causes– Lack of strong Eligibility Review Processes– Inability to retrieve claimant information from electronic/IVR records– Limited verification and processes to meet today’s technology used for work search

• Claimant Causes– Limited knowledge on what constitutes a valid work search– Incomplete or inadequate records of work search

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Areas of National Focus

Work Search Issues

Planned action(s) to address:• Implement Work Search and Eligibility Review

• LWC Reemployment pilot and Statewide roll out of LWC Reemployment Model

Principal Milestone:• 8/4/11 – Reemployment pilot launched

• 1/2/12 – Implement Work Search Reviews

• Spring 2012 - Evaluation and planning for expansion of pilot

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Areas of National Focus

Work Registration

Root cause(s) identified:• Lack of integration between the Workforce Development and Unemployment

Insurance Systems

• Errors related to coding and system registration

Planned action(s) to address issue:• Monitor system rejects and further automate to reduce errors

• Work in partnership with the state of Texas to develop and implement work registration pilot for interstate claimants

• Develop and implement Reemployment initiative in coordination with the Office of Workforce Development and Local Business and Career Solutions Centers

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State-Specific Issues

Work Registration

Principle Milestones:• 8/4/11 - Reemployment pilot launched

• Ongoing - Confirmation of automated work registration through review of error lists

• May 2011 - Interstate Work Registration pilot with Texas began with anticipated completion in Spring 2012

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State-Specific Issues

Communications Strategies

To claimants• Implement comprehensive communication plan with claimants to prevent and

mitigate improper payments

To employers

• Implement comprehensive communication plan with employers to prevent and mitigate improper payments

• Increase employer education and outreach activities

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Communications

Communications Strategies

To state UI staff

• Ensure ongoing training sessions based on Policy/Precedent, Quality Reviews, Appeals and Higher Authority decisions, UI Improvement and Simplification Committee Recommendations

• Provide additional training to field office staff

• Conduct Webinars and supervisory trainings

• Review Error Tracking and Trend Analysis reports

To the public

• Publicize fraud prosecution efforts

• Encourage public to report fraud via LWC website or Claims Center

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Communications

Oh, and You Gotta See This!!!

Killer App

Description of Issue:• Reduce work registration errors and improper payments

Description of Solution:• Separation stops on form 77, 110 and 152• Interstate Work Registration Pilot with Texas• Error Trend Tracking and Database

Results:• Automation of work registration has improved our work registration by 89% since

2010

Cost/Benefit explanation:• Increased notification of BAM findings• Increased supervisory monitoring of pending due dates• Increased supervisory claim processing reviews

INTEGRITY

We Got DAT!

Questions?

Margaret Mabile: mmabile@lwc.la.gov

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Summary and Q&A