Ohio hopes private-business partnership will help struggling unemployment system

(The Center Square) – The state of Ohio is turning to private business to help its overwhelmed unemployment system.

With record job losses created by the response to the COVID-19 pandemic and massive numbers of unemployment claims in the past year, the Ohio Department of Job and Family Services continues to struggle with communication, processing claims and fraud.

Gov. Mike DeWine hopes the public-private partnership expertise makes a difference.

The partnership teams include employees on loan from some of Ohio’s top banking and insurance companies, including Fifth Third Bank, Nationwide Insurance, Western & Southern Financial Group, Encova Insurance and Key Bank.

Pat Tiberi, president of the Ohio Business Roundtable, worked with business leaders in an effort to find talent with experience in large organization call centers, claims processes and fraud detection. The team has 16 members, but DeWine said it’s expected to grow.

“These experts will provide recommendations and solutions to improve the call center, claims process and fraud detection efforts in the state unemployment system,” DeWine said. “They’ll examine short-term and long-term improvements. Our goal is quick action while keeping an eye on the long-term best processes going forward, and we will continue working to improve the unemployment system so that eligible Ohioans in need can receive the financial assistance they are counting on during this pandemic.”

DeWine publicly apologized last month for the struggling unemployment system, saying there are not enough employees to handle the number of calls and the computer system is outdated. The program had around 500 employees when the pandemic hit and unemployment claims began growing to record numbers.

DeWine said there are 1,800 employees with the goal of increasing that to 2,500 by March.

Lt. Gov. Jon Husted said states were required to upgrade computer systems when the federal government created the Pandemic Assistance Insurance program, but Ohio did not have the ability to upgrade. Instead, the state is having to build a system.

Husted also said nearly 800,000 applications have been flagged for potential fraud under the Pandemic Unemployment Assistance program, while another 44,000 general unemployment claims have been flagged.

The state paid nearly $100 million to more than 110,000 people receiving traditional unemployment this week. Beginning on Saturday, 155,000 Ohioans should begin seeing benefits from the most-recent federal aid package.

House Democrats have called on House and Senate leadership to convene the state’s Unemployment Compensation Improvement and Modernization Council, which was created last year but has met.

“Ohioans are suffering, and some of the problems with Ohio’s unemployment system are unacceptable. Not just my constituents, but all Ohioans are wondering, why the council hasn’t met,” Rep. Lisa Sobecki, D-Toledo, said. “They haven’t even named a council chair. That hurts Ohioans across the entire state. It is unacceptable that they are dragging their feet.”

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