Reviews of the Benefit Accuracy Measurement (BAM) audit findings on improper payment rates of Utah claims for the past several years have shown continuing problems with claimant-caused payment errors. Claimant-caused payment errors were far more frequent than those caused by the Department or employers. In CY 96 claimant-caused overpayments equaled 8.3% of total dollars paid, or more than 5.5 million dollars.

The BAM unit recently undertook a Program Improvement (PI) study in an attempt to determine whether the Department's methods of informing claimants about Unemployment Insurance were contributing to these payment errors. During the one year period from 1 July 1996 to 30 June 1997, all randomly selected claimants audited by the BAM unit were tested on their knowledge of Unemployment Insurance, and given a survey sheet to complete. In addition, randomly selected claimants not audited were included in the study to increase the sample size to 895 in order for it to be statistically reliable. BAM auditors usually administered the survey/test in person but local office staff helped when the auditors were not present. Also, the survey/tests were mailed to those claimants that could not be seen in-person.

The survey showed that the Claimant Guide stood out as the most popular and useful educational tool used by the Department. It was found that 92% of the claimants had referred to the Guide and 88% considered it a good or excellent source of information. Other popular and useful sources of claimant information were the benefits rights video, the initial in-person claims interview, and follow-up contacts with UI staff. Sources of information considered not as useful were family and friends, employers, and having had previous claims experience.

An analysis of the answers to the test questions showed that claimants generally understood the requirements for receiving unemployment benefits. On average, claimants scored 83% correctly on the twenty-none questions. In spite of the high average test score, there were some concerns about the pattern of incorrect responses.

Questions most often missed were multiple choice questions covering (a) UI benefits while on strike, (b) claimant appeal rights, (c) work-search contacts, (d) job refusal and (e) BY earnings reporting. Questions least often missed were true/false questions dealing with (a) the claimant's PIN, (b) the requirement to report base-period wages, (c) fraud penalties, and (d) the (then) need to attend the job-search workshop. The complete test, with the percentage of correct answers for each question, can be found in Appendix A of the full report.

The data also revealed that claimants with key-week payment errors tended to have lower test scores than the others. Profiles of these claimants showed that they were younger, earned less money and had lower MBAs. They also regarded the claims experience as more difficult, and did not feel they understood their rights and responsibilities as thoroughly as did other claimants.

The elimination of the in-person initial claims interview and the benefit rights video (caused by telephone filing) may reduce the level of claimant knowledge -- a scenario that U.I. management should bear in mind.

Recommendations coming from this study:

1. Evaluate the effect that telephone initial filing has had on claimant knowledge by again conducting the survey/test in the near future.
   
   
2. Promote and continue to refine the Claimant Guide. This is the single most valuable resource of the Department to educate claimants about U.I.
   
   
3. Encourage claimants to call the Claims Center Information Line )or staff, if necessary) with their questions. (Employment Centers' staffs should encourage any job seeker to call the Claims Center Information Line concerning U.I.)
   
   
4. Offer the benefit rights video as an information tape at the Employment Centers (reference EC Design Recommendations, October 1997, page 38).
   
   
5. Provide a list of the most common mistakes claimants make as part of the Claimant Guide, to highlight the information the Department deems critical. (Appendix B in the report provides a starting point for such a list).
   
   
6. Continue the Eligibility Review Program, in some form. It appears to be important in helping to maintain communication and reduce payment errors.
   
   
7. Include the mailing of a self-test of claimant knowledge (with scoring key) with initial claims forms, or as part of the first mail-in Eligibility Review.
   
   

Questions and or additional information may be directed to Bob Comfort on 801-536-7605.