IE11 Not Supported

For optimal browsing, we recommend Chrome, Firefox or Safari browsers.

EDD Mulls Integrated Claims Management

The state Employment Development Department has issued a request for information as it explores how to better deliver “efficient workforce insurance programs and services.”

The words "Employment Development Department" on the outside of a gray building.
A linchpin state department charged with helping employers, workers and job seekers is in the early stages of a crucial IT modernization and wants to hear from vendors.

In a request for information (RFI) released Sept. 12, the Employment Development Department (EDD) wants to hear from IT companies capable of assisting it with an Integrated Claims Management System (ICMS). The department is exploring the “planning and future procurement of a modernized solution to deliver efficient workforce insurance programs and services.” A major goal of the solution is to provide an exceptional customer experience while simultaneously empowering the department to make informed, effective decisions within federal and state regulatory compliance. The objective is to do market research that helps the department investigate alternatives to modernized solutions, to provide efficient workforce insurance programs and services. Interested companies should describe potential products or suggested approaches to help EDD identify a solution that would best address its needs; multiple products may be described. Among the takeaways:

  • EDD administers several multibillion-dollar benefit programs, which include Unemployment Insurance (UI), State Disability Insurance (SDI) and Paid Family Leave (PFL); and it provides employment and training programs under the federal Workforce Innovation and Opportunity Act. The department also collects various employment payroll taxes including the personal income tax. EDD plans to modernize all UI, DI and PFL business program operations as part of its EDDNext solution. The department wants to hear from vendors for overall solutions related to the ICMS, capable of managing all aspects of claims determination, processing, payment, overpayment recovery and claimant communications, as well as the Integrated Data Management (IDM) platform.
  • EDD now has three independent, non-integrated benefit systems that rely, to varying degrees, on its mainframe and on external subsystems and components. The department’s Information Technology Branch (ITB) maintains the existing benefit systems for UI and DI, which includes the UI and SDI online systems, the PFL application, the Voluntary application, the Non-Industrial Disability Insurance (NDI) application, the Single Client Database, plus UI and DI mainframe applications and related supporting applications. ITB also supports the Tax Branch’s Accounting and Compliance Enterprise System (ACES), which interfaces with the Benefit Systems. Along with the obvious challenges in maintaining multiple benefits systems, a record number of claimants during the COVID-19 pandemic has generated challenges related to logistics, capacity, systems and human resources. Pandemic-era demand for EDD programs along with policy changes have highlighted the need for innovative operations and system models. These would enable the department to improve customer service while grappling with unprecedented levels of fraud.
  • Among the requirements, respondents should describe their proposed solution’s technical architecture, how it meets the EDDNext strategic objectives; talk about proposed cloud hosting options; and any customization required. Companies should also describe data storage needs; data governance strategy; and whether their solution will implement master data management. Respondents should also discuss proposed team composition for implementing the end-to-end solution; the software delivery life cycle methodology the team will follow; their solution’s disaster recovery capabilities; and provide a high-level phased implementation plan indicating how components can be implemented incrementally without impacting EDD operations.
  • A vendor conference is set for Thursday at 2 p.m.; it’s hyperlinked in the RFI. Questions are due by 4 p.m. Sept. 26, and responses will come Oct. 3. Responses to the RFI are due by 4 p.m. Oct. 25 and will be evaluated Nov. 8.
Theo Douglas is Assistant Managing Editor of Industry Insider — California.