Billions in Unemployment Benefits Paid in Error

[Parkbandit]

Nearly $19 billion in state unemployment benefits were paid in error during the three years that ended in June, new Labor Department data show.

The amount represents more than 10% of the $180 billion in jobless benefits paid nationwide during the period. (See a sortable chart of each states’ overpayments) The tally covers state programs, which offer benefits for up to 26 weeks, from July 2008 to June 2011. Layers of federal programs that help provide benefits for up to 99 weeks weren’t included.

The figures were released Wednesday as the Obama administration promotes its bid to reduce waste at federal agencies. The federal government foots the bill for administering the programs, and states are supposed to pay for the benefits. Many states exhausted their unemployment insurance trust funds during the long recession and slow recovery, prompting them to borrow from the federal government to replenish their funds.

Improper payments most often occur when recipients claim benefits even though they have returned to work; employers or their administrators don’t submit timely or accurate information about worker separations; or recipients don’t correctly register with a state’s employment-service organization.

The Labor Department launched a plan to crack down on the improper payments, targeting Virginia, Indiana, Colorado, Washington, Louisiana and Arizona in particular for their high error rates. Those states will undergo additional monitoring and technical assistance until their error rates dip below 10% and remain there for at least six months, according to the Labor Department.

“The Unemployment Insurance system is a unique partnership between the federal government and the states. States bear the responsibility of operating an efficient and effective benefits program, but as partners the federal government must be able to hold them accountable for doing so,” Labor Secretary Hilda Solis said in a release.

Indiana had the highest error rate, with improper payments accounting for more than 43% of the total amount paid. But Mark Everson, commissioner of the Indiana Department of Workforce Development, said the differences in error rates stem from variations in state programs.

“To characterize it as waste, fraud and abuse is just manipulative,” Mr. Everson said. “There’s no way in the world you could cut the 43% of people off.”

Mr. Everson pointed out that in Indiana, benefit recipients are required to list three work searches. If a recipient fills out only two of the three searches correctly, there are cases when the recipient can still receive benefits. But that counts as an error.

The Labor Department noted, “it may be misleading to compare one state’s payment accuracy rates with another state’s rates… States with stringent or complex provisions tend to have higher improper payment rates than those with simpler, more straightforward provisions.”

http://blogs.wsj.com/economics/2011/09/14/billions-in-unemployment-benefits-paid-in-error/tab/print/

Couple things:

And yet.. we're hearing that the Federal Government wants MORE money to spend on this program... here's an idea, spend what you have intelligently.

And is anyone surprised that Indiana leads the nation in errors?

[AnticorRifling]

Mr. Everson pointed out that in Indiana, benefit recipients are required to list three work searches. If a recipient fills out only two of the three searches correctly, there are cases when the recipient can still receive benefits. But that counts as an error.

The Labor Department noted, “it may be misleading to compare one state’s payment accuracy rates with another state’s rates… States with stringent or complex provisions tend to have higher improper payment rates than those with simpler, more straightforward provisions.”

http://blogs.wsj.com/economics/2011/09/14/billions-in-unemployment-benefits-paid-in-error/tab/print/



Fuckin hoosiers...

I do like how he's trying to make it sound ok "Well they didn't meet requirements but we still paid them that's just an error not fraud". Then he follows with "Well of course we fucked up more we have more rules to follow and that shit gets hard yo".

[Rinualdo]

Couple things:

And yet.. we're hearing that the Federal Government wants MORE money to spend on this program... here's an idea, spend what you have intelligently.

And is anyone surprised that Indiana leads the nation in errors?


Just for grins, you should check out the fraud in the DoD and Iraq/Afghanistan contracts. Puts this number to shame.
Interesting you would choose to focus on a social program, however.

[Tgo01]

Just for grins, you should check out the fraud in the DoD and Iraq/Afghanistan contracts. Puts this number to shame.
Interesting you would choose to focus on a social program, however.

We've all heard about the amount of waste and fraud happening in the DoD, so we can never talk about other government waste/fraud until the DoD is cleaned up or what?

[Rinualdo]

We've all heard about the amount of waste and fraud happening in the DoD, so we can never talk about other government waste/fraud until the DoD is cleaned up or what?


Of course not and I didn't say we shouldn't talk about it.
I said I find it interesting that on this and other occasions, PB likes to point out fraud in social programs, which are miniscule in comparison to the DoD fraud, which I can't recall him starting a thread about and almost never responds to intelligently.

It's selective reasoning, and I find that amusing.

[Parkbandit]

Of course not and I didn't say we shouldn't talk about it.
I said I find it interesting that on this and other occasions, PB likes to point out fraud in social programs, which are miniscule in comparison to the DoD fraud, which I can't recall him starting a thread about and almost never responds to intelligently.

It's selective reasoning, and I find that amusing.

Start a topic on it... no one is stopping you.

This topic, however, deals with the widespread fraud in the unemployment benefits department. Perhaps you would like to comment on this topic, instead of your typical diversion tactics?

[Rinualdo]

Start a topic on it... no one is stopping you.

This topic, however, deals with the widespread fraud in the unemployment benefits department. Perhaps you would like to comment on this topic, instead of your typical diversion tactics?

What's there to comment on? It's fraud and should be adjusted. Pretty simple.

[Inspire]

If there is money involved, there is fraud involved.

[Rinualdo]

If there is money involved, there is fraud involved.

Take it from one who knows!

[ClydeR]

The Labor Department launched a plan to crack down on the improper payments, targeting Virginia, Indiana, Colorado, Washington, Louisiana and Arizona in particular for their high error rates. Those states will undergo additional monitoring and technical assistance until their error rates dip below 10% and remain there for at least six months, according to the Labor Department.

What I want to know if why Obama is mostly picking on Republican states.

[Androidpk]

Was that missing 2 trillion ever found at the pentagon?

[TheEschaton]

Uh, is it just me, or is the whole article about errors on the STATE level, and then tries to tenuously tie it to an Obama measure to reduce waste at the federal level, which wouldn't even affect these state programs?

Interestingly, those are presumptively red states, who "might have higher error rates" due to more "stringent and complex" pay out systems. So, in essence, Obama is being tied to Republican efforts to make unemployment benefits harder to collect, and being blamed for the higher error rate that results from them.

Excellent reporting as usual.

[Tgo01]

Uh, is it just me, or is the whole article about errors on the STATE level, and then tries to tenuously tie it to an Obama measure to reduce waste at the federal level, which wouldn't even affect these state programs?

Interestingly, those are presumptively red states, who "might have higher error rates" due to more "stringent and complex" pay out systems. So, in essence, Obama is being tied to Republican efforts to make unemployment benefits harder to collect, and being blamed for the higher error rate that results from them.

Excellent reporting as usual.

I don't think it's too much to ask for the federal government to demand a little bit of an effort on a states part to reduce fraud/waste before giving them money.

[~Rocktar~]

Uh, is it just me <snippage>

Yes.




Interestingly, those are presumptively red states, who "might have higher error rates" due to more "stringent and complex" pay out systems. So, in essence, Obama is being tied to Republican efforts to make unemployment benefits harder to collect, and being blamed for the higher error rate that results from them.

Excellent reporting as usual.

Did you take classes in how do divert attention from obvious points or what? Oh, and nice assumption there, again, diversionary as usual.

[TheEschaton]

But the error is on the state level, using state funds. The only link between the two seems to be a statement by the Labor Secretary that "the federal government should monitor these states cause they fuck up so hard." A statement you states-rights types should have some issue with.

-TheE-

[TheEschaton]

Yes.





Did you take classes in how do divert attention from obvious points or what? Oh, and nice assumption there, again, diversionary as usual.

Seriously, what's the "obvious point" that I'm diverting attention away from? Can you tell me how the unemployment benefits erroneously being paid out in this article are in any way the fault of fraud at the federal level?

[Tgo01]

But the error is on the state level, using state funds. The only link between the two seems to be a statement by the Labor Secretary that "the federal government should monitor these states cause they fuck up so hard." A statement you states-rights types should have some issue with.

-TheE-


The figures were released Wednesday as the Obama administration promotes its bid to reduce waste at federal agencies. The federal government foots the bill for administering the programs, and states are supposed to pay for the benefits. Many states exhausted their unemployment insurance trust funds during the long recession and slow recovery, prompting them to borrow from the federal government to replenish their funds.

.

[TheEschaton]

Mmm, excuse me, some of the funds were federal then, but the error is still on the state level. If I was a bank and I loaned a company that was generally trusted a million dollars for inventory purchase, and their executives accidentally bought the wrong inventory, is the bank responsible for the wrong purchase?

[Tgo01]

Mmm, excuse me, some of the funds were federal then, but the error is still on the state level. If I was a bank and I loaned a company that was generally trusted a million dollars for inventory purchase, and their executives accidentally bought the wrong inventory, is the bank responsible for the wrong purchase?

That depends, is that bank receiving a bailout?

[waywardgs]

The real question here is whether or not rocktar sent the check back.

[Parkbandit]

Uh, is it just me, or is the whole article about errors on the STATE level, and then tries to tenuously tie it to an Obama measure to reduce waste at the federal level, which wouldn't even affect these state programs?

Interestingly, those are presumptively red states, who "might have higher error rates" due to more "stringent and complex" pay out systems. So, in essence, Obama is being tied to Republican efforts to make unemployment benefits harder to collect, and being blamed for the higher error rate that results from them.

Excellent reporting as usual.

It's just you... no one is trying to pin this problem on poor Obama. There has always been fraud in these gigantic government programs.. this report just happened to come out while Obama wants to make this program even bigger.

[TheEschaton]

And yet.. we're hearing that the Federal Government wants MORE money to spend on this program... here's an idea, spend what you have intelligently.

So who is the antecedent of "you" in this quote, and why is it "you"'s fault that what is being spent isn't being spent intelligently, in this particular case?

[AnticorRifling]

The gubmint.

[Parkbandit]

So who is the antecedent of "you" in this quote, and why is it "you"'s fault that what is being spent isn't being spent intelligently, in this particular case?

You = federal government.

[Suppa Hobbit Mage]

Mmm, excuse me, some of the funds were federal then, but the error is still on the state level. If I was a bank and I loaned a company that was generally trusted a million dollars for inventory purchase, and their executives accidentally bought the wrong inventory, is the bank responsible for the wrong purchase?

If you were a bank and loaned a green company that was generally trusted a half billion dollars as part of a stimulus, against the recommendations of the analysts at your bank, and then that green company went tits up two years later under questionable circumstances... would you...

oh nevermind.

[AnticorRifling]

I like how you try to give a hypothetical situation to TheE using a green company and in another thread crb is doing the same thing to a GS player using fast food.

Racists.

[Warriorbird]

If you were a bank and loaned a green company that was generally trusted a half billion dollars as part of a stimulus, against the recommendations of the analysts at your bank, and then that green company went tits up two years later under questionable circumstances... would you...

oh nevermind.

You'd be about as culpable as Rick Perry giving out HPV viruses that cause retardation.

[waywardgs]

This and the other thread about guns and docs... are both about state's rights. It's been an ongoing battle since the union was formed a couple centuries ago.

[AnticorRifling]

This and the other thread about guns and docs... are both about state's rights. It's been an ongoing battle since the union was formed a couple centuries ago.

Which state?

[Warriorbird]

This clearly needs to be left to the states.

[Outlaw Pete]

The Unemployment Insurance system is a unique partnership between the federal government and the states. States bear the responsibility of operating an efficient and effective benefits program, but as partners the federal government must be able to hold them accountable for doing so

This piece of the story is telling.

The federal government, whose role in this partnership is oversight, failed miserably to correct the states' programs.

These states should be left to run these programs themselves without the interference of the ineffective federal government.

The private market offers a solution to the welfare state . . .

http://www.nathanielturner.com/shippandsmith.jpg

"THEM WELFARE MOMS WOULD STOP BREEDING IF WE STRUNG 'EM ALL UP, CLETUS." POINTING AT THE FRUIT TREE, JONNY RAY JONES EXPLAINS HOW TO SOLVE THE WELFARE STATE.

[Inspire]

States don't need rights and they shouldn't have separate laws.

This is the "United" states of america yet we all don't have to follow the same rule of law. Dumb.

[Parkbandit]

States don't need rights and they shouldn't have separate laws.

This is the "United" states of america yet we all don't have to follow the same rule of law. Dumb.

Kids.. this is what happens when you don't go to school and attend a simple US history class.