The First Step is Prevention:

Determining UI eligibility with real-time national incarceration data.

Presenters

Ray Atencio Appriss Safety

Business Development Executive

Aaron Hinds New Mexico Dept. of Workforce Solutions

Director, Unemployment Insurance

Bhanu Rathore Deloitte Consulting LLP

Manager, Systems Integration

A p p r i s s O v e r v i e w

Mary’s Story and the Birth of VINE

Who is Appriss Safety today?

Our mission: Knowledge for good.

What we do: Save lives, fight crime, prevent fraud and manage risk.

How we do it: Appriss Safety operates the nation’s most comprehensive and up-to-date arrest data network.

no·ti·fy

inform someone of something, typically in a formal or official manner

Appriss Safety provides real-time, multimodal notifications to save lives and provide peace of mind.

Victims, law enforcement, victim advocates, citizens use our notification solutions to be notified about:

• Offender release/ booking

• Offender transfer

• Protective orders

• Court proceedings

• Arrest warrants

• Gun purchases

in·ves·ti·gate

make inquiries as to the character, activities, or background of an individual

Appriss Safety offers solutions that help law enforcement locate wanted persons, conclude investigations faster, and bolster officer safety.

Clients use our solutions to:

• Search for persons of interest within a national database of detailed historical and current booking information

• Set “watches” on persons of interest

• Run customized reporting

mit·i·gateinsider risk

reduce malicious threats that come from people within an organization, such as employees, former employees, contractors or business associates

Appriss Safety solutions help protect agencies and employers from legal, regulatory, financial and reputational penalties of rogue employees.

Our solution:

• Identifies criminal bookings and charges nationwide

• Enhances pre-employment screening to keep threats out

• Monitors employees post-hire to find threats within

• Helps prevent workplace violence, corporate financial and customer loyalty loss, and human tragedy

pre·vent fraud

keep wrongful or criminal deception intended to result in financial or personal gain from happening or arising

Appriss Safety provides solutions that help government programs eliminate fraud, waste and abuse.

Fraud prevention customers use our solutions to:

• Eliminate receipt of entitlement dollars while recipients are incarcerated

• Locate those who owe child support payments

• Improve continuity of care and reduce healthcare costs for Medicaid patients

F r a u d P r e v e n t i o nW h y d i d A p p r i s s & N M D W S M e e t ?

The Problem: Improper Payments

1. D.C. – 20.000% / $17,675,9362. NEVADA – 16.995% / $86,009,5033. NEW MEXICO – 16.781% / $36,829,9214. TENNESEE – 16.557% / $68,119,7575. MAINE – 16.242% / $23,101,2706. NORTH CAROLINA 15.716% / $60,425,2867. WISCONSIN 14.434% / $114,892,437

Source: www.dol.gov/general/maps; 8/26/16

Success Stories

• Colorado Department of Labor and Employment

• D.C. Department of Employment Services

• Illinois Department of Employment Services

• Iowa Workforce Development

• Kansas Department of Labor

• Louisiana Workforce Solutions

• Maryland Department of Licensing, Labor and Regulation

• Mississippi Department of Employment Services

• New Mexico Department of Workforce Solutions

• Ohio Department of Job and Family Services

• Oklahoma Employment Security Commission

• South Carolina Department of Employment and Workforce

• Texas Workforce Commission

• Utah Department of Workforce Services

• Wisconsin Department of Workforce Development

States using national incarceration data for improper payments

Case study: UI fraud prevention

• Reduced average incarceration overpayment from 11 weeks ($3,536) to <2 weeks ($517)

• Prevented $13.3M from leaving the UI trust fund

• Identified $4.7M in overpayments

TWC presented results of utilizing Appriss to identify and prevent overpayments at the 2015 National Association of State Workforce Agencies (NASWA) Unemployment Insurance (UI) Directors and IT/Legal Issues Forum.

C a s e S t u d y : N e w M e x i c o

Project Background

The U.S. has slightly more jails than colleges.1

› ~5,000 correctional facilities

› ~4,725 colleges

New Mexico has 46 correctional facilities.

› 11 state/federal prisons (NMCD)

› 35 local and county jails

1 C. Ingraham, The Washington Post, 1/6/2015

Observations and Results: Appriss Data

Appriss Incarceration Data in New Mexico

Appriss receives incarceration data from 91%of NM correctional entities.

Project Background

1 Retrieved 10/18/16 from www.dol.gov/general/maps/nm

USDOL SBR Funding

Solutions to address each area:

› ES/UI integration efforts

› Work search auditing

› NDNH/SDNH

› Cross matches across agencies

Project Background

NMDWS Cross Match Definition

Project Background

Pre-Implementation Incarceration Cross Match Workflow

WTD – Project Management Office -19-

•Work item created

•UIA automatically sends Fact Finding to claimant

Claimant Contacted & Responds

(10 days + 1)

•11th day - BPC sends Fact Finding to NMCD

Correctional Facility Contacted & Responds

(10 days +1)

•22nd day – BPC sends rebuttal to Claimant

Claimant Rebuttal

(10 days + 1)

•BPC closes work item

Determination

(33 days)

Perfect Scenario

Most Common(6.5 wks)

Earliest Denial

Project Background

Why Perform a Proof of Concept?

1. Demonstrate feasibility and potential return on investment (ROI), with potential reduction of improper payments using actual claims data against the prospective cost of incarceration cross match services.

2. Explore if NMDWS implemented a more robust incarceration cross match process.

3. Ensure Appriss’ product will work in our environment and function as promoted using current NM workflow and system capabilities

4. No cost to NMDWS.

Methodology

High Level Approach

WTD – Project Management Office -21-

SendData

• 12 months of data (6/2015-6/2016)

• Criteria: claimant with a claim and at least 1 payment

Get Data

• Match records based on 5 criteria

• Rate each record with Match Level of Confidence

Analyze Data

• Research based on randomized sample data set

• Research based on incarceration cross match work items

Methodology

The Testing Team researched work items from the same one-year period:

› NMCD

› Appriss (where incarceration period was greater than 4 consecutive calendar days)

WTD – Project Management Office -22-

Observations & Results: Appriss Data

Appriss Cross Match Definition

WTD – Project Management Office -23-

8530, 19%

35686, 81%

44,216 Records (Unique Claimants)

Records with an Appriss cross match

Records without an Appriss cross match

19% Appriss Cross Match

Observations & Results: Appriss Data

Highest Out-of-State Contributors:

WTD – Project Management Office -24-

AZ, 52

CA, 463

CO, 873

NV, 35

OK, 205

TX, 1587

UT, 304

3,519 total records

Other notables: › Florida: 246 records› North Carolina: 149 records › Oregon: 125 records› Washington: 154 records

Observations & Results: Appriss Data

Ineligible Raw Data Results

$905,698 total overpaid to 305 claimants› $3,310,143 total amount of claims paid

› 27% of total claims paid were ineligible

Average total overpaid:

$2,970 per ineligible claimant

WTD – Project Management Office -25-

$3,310,143

$905,698

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

Total $$ Claims Paid Total $$ Claims Overpaid

Observations & Results: Current Process

Process Improvements:

WTD – Project Management Office -26-

M e t r i c s

&

R e t u r n o n I n v e s t m e n t ( R O I )

Case study: UI fraud prevention

0%

5%

10%

15%

20%

25%

30%

35%

40%

8,000

8,500

9,000

9,500

10,000

10,500

Week Ending Dates

Number of Appriss Webservice Calls Percent of Ineligible Determinations

Identified 42 claimants ineligible

for receiving UI benefits.$45,000 Overpayment

established

Q & A