The modernization project will launch this month, but the new system using the GUS benefits and appeals system won’t be operational until late 2026.
The state expects it to cost $83.3 million to build and maintain for potentially 12 years after it’s launched. It will spend about $34 million in the first three years to cover initial development, implementation and training costs.
The off-the-shelf system was chosen in a competitive selection process and will bring new features to Ohio including: simplified self-service options for claims and appeals, improved employee experience, cloud-based technology and improved security and fraud tools, data analytics and reporting for fraud prevention, operations management and regulatory reporting.
According to Geographic Solutions’ website, agencies that use the technology “have documented a decrease in the number of weeks claimants are unemployed, millions of dollars in trust fund savings and lower rates for employers.”
“We have chosen a system with a proven track record in other states and that we are confident will provide an improved experience for our customers,” said Ohio Department of Job and Family Services Director Matt Damschroder in a press release. “This effort will not simply replace technology but will transform how we manage benefits and appeals for unemployed Ohioans.”
The announcement comes shortly after the indictment of a former state subcontractor for a 2020 unemployment fraud scheme. A reportfrom the Ohio Office of the Inspector General details that although the employee was terminated shortly after he started on the job, his login credentials for the state’s unemployment system weren’t deactivated until months later, allowing him to access 448 claims and release more than $6.8 million dollars in fraudulent funds as a result of manipulated and fabricated claims.
