DIRECTIVE	:	UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 22-01
TO	:	STATE EMPLOYMENT SECURITY AGENCIES
FROM	:	GRACE A. KILBANE Administrator Office of Workforce Security
SUBJECT	:	Implementation/Training Conferences for State Employment Security Agency (SESA) Benefit Accuracy Measurement (BAM) Staff on the Denied Claims Accuracy (DCA) Program

1. Purpose. To announce Implementation and Training conferences to prepare SESA BAM staff for the start-up, and continuing investigations of denied claims for Unemployment Insurance (UI).

2. References. ET Handbook No. 395, Revised July, 1997; and UIPL No. 10-01, dated November 23, 2000.

3. Background. The Department has submitted a request to the Office of Management and Budget (OMB) for approval under the Paperwork Reduction Act of 1995 to collect data on the accuracy of denied UI claims and to also include interstate paid claims in the BAM paid claims samples. The Department plans to implement the DCA program for all SESAs conducting BAM and to include paid interstate claims in the BAM samples effective with batch 200123 (batch ending date June 9, 2001), pending OMB approval.

   Since 1987 all SESAs, except the Virgin Islands, have been required by regulation at 20 CFR Part 602 to operate a quality control program to assess the accuracy of paid claims in the State Unemployment Insurance (UI), Unemployment Compensation for Federal Employees (UCFE), and Unemployment Compensation for Ex-Service members (UCX) programs. This program was initially called Benefits Quality Control (BAM), but was renamed BAM in 1996.

   During the consultation process preceding the establishment of BAM/BAM , a number of public interest groups representing employers, employees, and State government agencies proposed underlying principles to govern the program. The Department adopted these consensus principles, one of which stated that "QC would be expanded to include the review/investigation of claims that had been denied."

   In 1995 the Performance Enhancement Work Group (PEWG), which consisted of senior SESA managers and Federal staff, recommended several changes in the way UI operational performance was measured. The Department accepted most of the recommendations and has implemented them as UI PERFORMS. Among the PEWG recommendations with respect to BAM was the implementation of a system to measure the accuracy of determinations that deny eligibility for UI claims. The PEWG, also, recommended sample size reductions and the implementation of alternative methods for BAM case investigations. These changes freed up BAM staff from investigations making them available for the DCA program. States utilized the extra staff for program improvement purposes in the interim pending implementation of DCA.

   The Department conducted two separate pilot studies in 1986-87 and again in 1997-98, to measure the accuracy of determinations to deny unemployment compensation payments for monetary, separation, and nonseparation reasons, and to test the feasibility of the BAM methodology in evaluating the accuracy of denied intrastate and interstate UC claims.

   Five States were involved in each of these studies. The findings in each study identified significant rates of error in the denial determinations that were investigated, and confirmed the operational feasibility of applying the BAM methodology to denied claims and interstate paid claims.

4. FY 2001 BAM Denied Claims Accuracy Conferences. The Department of Labor has scheduled two implementation/training conferences for approximately 50 participants each. The conferences are designed to address implementation issues and to provide a detailed overview of the three types of denied claims. Attendees will review cases and complete denial data collection instruments (DCIs) so that they can return to their respective States and train appropriate BAM staff. Selection will be on a first-come, first-served basis with geographic preference given to those closest to the training sites. The two conferences are scheduled as follows:

   Date	Location	Deadline
   April 11 - 13, 2000	Washington, D.C.	March 11, 2001
   May 23 - 25, 2001	San Diego, California	April 23, 2001

5. Costs. The Department will reimburse SESAs for one State staff to attend the implementation/training conferences. The SESAs will be responsible for the costs of any additional staff attending. Additional staff will be limited to seating availability.

6. Logistics. The attached sheets provide information on location, hours, hotel arrangements, and ground transportation for the upcoming conferences. A separate sheet is provided for each conference.

7. Action Required. State Administrators are requested to notify appropriate State staff of the upcoming BAM conferences and to provide Regional Office staff with the name, title, and session preference of each SESA nominee as soon as possible. In addition, Administrators should return BAM staff who may have been assigned to program improvement tasks elsewhere in the agency, to the BAM unit in preparation for DCA implementation. The reassignments should be done timely to allow for training.

8. Inquiries. Inquiries should be directed to the appropriate Regional Office.

9. Attachments. 

BAM DENIALS IMPLEMENTATION/TRAINING SEMINAR

April 11 - 13, 2001

HOTEL/SEMINAR LOCATION

The Four Points Sheraton Hotel
1201 K Street, N.W.
Washington, D.C. 20005

SEMINAR HOURS: Begins 1:00 PM - April 11, 2001

Concludes: 12:00 Noon - April 13, 2001

A block of rooms has been reserved at the hotel under the group name "U.S. Department of Labor, BAM Denials Training." The room rate is $148.00 plus 14.5 % tax per night for a single, or $168.00 plus 14.5 % tax for a double. Each participant is responsible for contacting the hotel at (202) 289-7600, or through Sheraton's central reservation office at 1-800-325-3535 to make his/her own reservation. Please reference the group name when making a reservation to ensure the correct rate is quoted. Reservations must be made no later than March 11, 2001.

GROUND TRANSPORTATION: The hotel is located at the corner of 12^th & K Streets, N.W., approximately 5 blocks north of Metro Center. The blue line is available from Reagan National Airport without a change of trains. Super Shuttle and taxi cabs are also available from all three area airports (Reagan National, Dulles, Baltimore-Washington).

BAM DENIALS IMPLEMENTATION TRAINING CONFERENCE

May 23 - 25, 2001

HOTEL/CONFERENCE LOCATION

The US Grant Hotel
326 Broadway
San Diego, California 92101

CONFERENCE HOURS: Begins: 1:00 PM - May 23, 2001

Concludes: 12:00 Noon - May 25, 2001

A block of rooms has been reserved at the hotel under the group name "U.S. Department of Labor." The room rate is $99.00 plus 10.5 % tax per night for a single, or $119.00 plus 10.5 % tax for a double. Each participant is responsible for contacting the hotel at (619) 232-3131, or 1-800-334-6957 to make his/her own reservation. Please reference the group name when making a reservation to ensure the correct rate is quoted. Reservations must be made no later than April 23, 2001.

GROUND TRANSPORTATION: The hotel is located in the heart of downtown San Diego's business district, and is a short taxi cab ride from the airport. Complimentary airport shuttle service is also available./P>