Colorado Tries to Recoup the $305 Million They Paid in Excess Jobless Claims

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Newsmax reports that ”Colorado is working to recover the whopping $305 million in improper payments it made from the state’s Unemployment Insurance Trust Fund, primarily to unemployment claimants — from 2008 through 2010.”

According to the article, the problem first came to Colorado’s attention in May. Then, in August, the U.S. Department of Labor noticed that Colorado’s improper payments had jumped to 18 percent. The federal government’s guidelines note that improper payments are not to exceed 10 percent of the total unemployment payments.

While the Newsmax piece notes that 43 percent of the unemployment payments have been recovered, the remainder – reportedly about $173 million – may be more difficult to collect. The article cites the Colorado Department of Labor and Employment executive director as saying that four percent of the improper payments have been determined to be fraud based. (That’s four percent that they know of to date.)

Source: Today’s ”Fraud of the Day” is based on an article entitled, “Colorado scrambles to recoup $305 million in excess jobless claims,” by Jamie Reno, published by Newsmax, October 13, 2011.

Colorado is working to recover the whopping $305 million in improper payments it made from the state’s Unemployment Insurance Trust Fund — primarily to unemployment claimants — from 2008 through 2010.

The state noticed the problem in May, and the U.S. Department of Labor notified the state in late August that its improper payments reached 17 percent to 18 percent, said Ellen Golombek, executive director of the Colorado Department of Labor and Employment. Four percent of that was because of fraud, the Denver Post quotes Golombek as saying.

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.