Developing Opportunity: EDDNext to Release Large Claims Management RFP

EDDNext, the ongoing effort to modernize the state’s unemployment benefits system, is about to release a huge request for proposals to replace its aging claims management system. 

The Employment Development Department (EDD) currently relies on a decades-old, mainframe-based system that has become increasingly difficult to maintain and adapt to modern needs, EDDNext Deputy Director Ron Hughes told Industry Insider — California.  

“We’ve got a 45-year-old mainframe-based claims management system, and the challenge with that is that it’s really difficult to make any changes,” he said.

The impending RFP received final approval this week, but won’t be released until sometime between Aug. 5 and Aug. 15.

Hughes noted that the solicitation was designed to be vendor-agnostic with the idea that industry expertise could help guide the direction of the department’s new solution. He noted that around five vendors already have viable claims management solutions that would fit the bill.  

“We obviously want to make sure it’s fair, so we spent a lot of time looking at it from the vendor’s point of view to make sure we don’t put anything in there that’s too restrictive,” he said. 

“It’s going to be an open procurement. We’re going to leave it up to the vendor to suggest the solution,” Hughes added.   

The new solution will be cloud-based and able to adapt and scale to department needs in the event of large-scale events like another pandemic or a recession.

Industry Insider — California will bring you more details about the procurement when it is released, likely next week.