Illinois launches new benefit fraud prevention tool
Cross-matching, other initiatives to save $200 million annually
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[July 13, 2012]
CHICAGO -- Individuals collecting
unemployment insurance will be matched against inmate lists from
Illinois' county jails and state prisons in the latest effort to
protect taxpayers, prevent fraud and abuse, and help the economy,
the Illinois Department of Employment Security announced this week.
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"Cracking down on waste, fraud and abuse is a top priority," IDES
Director Jay Rowell said. "This is an important step in our ongoing
effort to ensure that only those who earned benefits receive
benefits. By bringing greater fiscal integrity to unemployment
benefits, we can reduce taxes on businesses, which will help to
further encourage job growth." Among the requirements to be
eligible for unemployment insurance is to be available for work. The
new inmate cross-match system identifies an individual who is
incarcerated but receiving a benefit payment. Measures are in place
to prevent benefits from being improperly stripped from someone who
is incarcerated but otherwise available for work. As with all IDES
eligibility decisions, an appeals process is available.
The inmate cross-match program is yet another effort in the past
year that fights fraud and combats abuse. The IDES has a similar
program that compares employment lists against unemployment
insurance beneficiaries. The department now garnishes federal income
tax returns from individuals who wrongfully collected benefits and
refused a repayment program. Working with Attorney General Lisa
Madigan, two new assistant attorneys general now are detailed to
IDES.
Together, the new initiatives could save up to $200 million each
year. These anti-fraud efforts enhance the more than $400 million
businesses are expected to save through unemployment insurance rate
reform and the 16 percent tax reduction for companies that did not
lay off workers in 2011.
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Unemployment insurance benefits are funded through business
contributions. These temporary dollars most often are spent for
essentials at the local grocery, gas station and clothing store,
thereby supporting the local economy. Every $1 in unemployment
benefits generates nearly $1.63 in economic activity.
Rep. John Cavaletto, R-Salem, sponsored a resolution encouraging
the IDES to undertake this cross-match.
Report fraud suspicions to IDES at 800-814-0513 or online at
www.ides.illinois.gov.
[Text from
Illinois
Department of Employment Security
file received from
the
Illinois Office of
Communication and Information]
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