State Unemployment Agency Moves to Replace Old System That Allowed Fraudulent Claims

Michigan’s Unemployment Insurance Agency has been widely criticized for thousands of fraudulent claims that were allowed during the COVID pandemic.  The Agency is hoping to put that era behind it with the introduction of a new computer system, as outlined in a statement from the UIA today:

The Michigan Unemployment Insurance Agency (UIA) announced today it has chosen Deloitte to design and install a modern, innovative, user-focused unemployment insurance computer system that prioritizes ease of access for workers and employers while also streamlining jobless claims processing. UIA’s current aging architecture makes it difficult to efficiently process worker claims and employer payments, especially during quickly changing economic conditions such as the recent global pandemic.

The new system will replace the Michigan Integrated Data Automated System (MiDAS), first put into use nearly a decade ago under Gov. Rick Snyder. Workers use MiDAS’ Michigan Web Account Manager (MiWAM) to file for jobless claims and certify for benefits; employers use MIWAM to pay unemployment taxes and file reports.

“The Unemployment Insurance Agency is working hard every day to improve all the ways that Michigan workers interact with our unemployment system, and that starts with a new computer system that is human-centered and easy to use,” said UIA Director Julia Dale. “Already, the UIA is in better shape than at any time over the last decade – but that’s not good enough. Michigan workers should be able to apply for benefits with confidence, so they can support their families without worrying about when or if they’ll receive benefits. I am committed to developing a robust and secure system that provides Michiganders with the help they need when they need it.”

The new system is expected to be fully operational in 2025. The total projected cost is more than $78 million over a 10-year contract.

Deloitte, with decades of experience in unemployment insurance modernization, currently supports unemployment insurance benefits and tax systems in 15 states, including California, Florida and Massachusetts. Its Unemployment Framework for Automated Claim & Tax Services (uFACTS) system offers superior program integrity to ensure the timely payment of benefits as well as a robust and comprehensive fraud detection program.

Deloitte’s system will also allow UIA to quickly adapt to react to economic changes that may increase the demand on the state’s UI system, limit the amount of custom coding needed to analyze UI data quickly or make program changes, and connect with other state software, which allows for seamless access for claimants and UIA staff.

As UIA transitions to a new system that prioritizes ease of use and meets Michigan’s unique specifications, workers and businesses should not experience any interruptions in access to MiWAM or the services provided by UIA.

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