blog2In the UI industry, there is a broad spectrum reflecting the extent to which vendors incorporate technology and unemployment expertise into their processes. Some of our competitors believe that technology should be used to fully automate the unemployment process, while others offer their clients industry expertise but bring only limited technological capabilities to the table. Unfortunately, neither of these approaches achieves the right results in key performance indicators (win, compliance, and protest rates) — and ultimately leads to higher tax rates for their clients.

At one end of the spectrum, when an unemployment TPA tries to fully automate the unemployment process and omits review by an experienced unemployment expert, insufficient or improper responses are frequently submitted to the state unemployment agency. Insufficient documentation will typically cause the employer to lose the initial protest and, under the provisions of the UI Integrity legislation, prevent the employer from protesting the claim to the hearing level.

However, unnecessary documentation can lead to lost claims, as well. A CCC client told me a story that illustrates this point perfectly. Prior to working with CCC, the client’s unemployment TPA would not review the documentation they received from the client. In one case, the employer wanted to protest a claim because the claimant was terminated for theft. The unemployment TPA sent the entire employee file to the state, which included a warning for having an untucked shirt in violation of company policy. The administrative law judge chose to focus on the warning for the untucked shirt instead of the theft and awarded the claimant benefits. If an experienced UI professional had reviewed the documentation, the analyst would have removed prior warnings and information that were not related to the final incident, and the employer would have likely won the case.

At the other end of the spectrum, unemployment TPAs that do not utilize the latest technology makes the UI process more challenging for their clients as well. For example, UI TPAs that are not integrated with the State Information Data Exchange System (SIDES) still receive all initial claims via paper, which shortens the window for a timely response. In addition, unemployment vendors that do not offer an online portal make it harder to manage deadlines, workloads, etc.

CCC carefully balances how we incorporate technology and industry expertise into the unemployment process. We use technology, where appropriate, to expedite the UI process. For example, if there is a “lack of work” claim, our system will automatically process the claim, audit the charges, but a Claims Analyst will not review it. However, we ensure that a skilled and experienced Claims Analyst examines each claim that requires an individual review. This consultative aspect of our service allows our clients to respond to claims with excellent documentation in a timely and compliant manner, giving our clients the best chance of winning claims at the initial level.


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