Unemployment Insurance UI has the fifth highest rate of improper payments among all government departments Improper Payment Rate By State In 2015 35B in improper payments 107 of UI Benefits ID: 782293
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Quantifying waste, fraud, and error in the US government Unemployment Insurance System
Unemployment Insurance (UI) has the fifth highest rate of improper payments among all government departments
Improper Payment Rate - By State
In 2015:
$3.5B in improper payments || 10.7% of UI Benefits
Causes of improper payments include:
Payments to claimant continue after individuals have returned to work
Failure or claimant to register for reemployment services
Failure of employers to timely or correctly report on worker separation
Inaccurate calculation of benefits based on wages earned prior to unemployment
Source: https://dupress.deloitte.com/dup-us-en/multimedia/interactives/fraud-waste-and-abuse-in-entitlement-programs-benefits-fraud.html
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Logo
BeneChain
Slide2Benechain
significantly reduces administrative overhead, cycle time, and improper payments
3 to 6 Weeks
Time Delay
Employee Terminated Co. 1
ER Report
ER Report
EE Report
EE Report
EE Report
Benefits Start, Job Search
Employee Hired at Co. 2, Benefits stop
Federal Unemployment Benefit Fund
Administered by States
Fees
Automated
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Slide3The first implementation of Benechain will focus on one state. If successful, expansion will follow
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Slide4Opportunity for Immediate Monetization
Implementation Contract:
Charge pilot state - NC (and successive partner states) a platform development, implementation, and training fee commensurate with comparable IT
system
implementations
Transaction Fees:
Extract minimal transaction fee from state (<$1) every time a new record (claim, new job offer, etc.) is written to the chain by an employer - in this model, states could receive direct reimbursement from companies, or pay fees with admin $ saved by program
Ongoing Services:
Receive revenue from ongoing maintenance of state systems, training/consulting on
Benechain
updates, and eventual move to 100% blockchain solution
Business Model & Monetization4
Cyclical Revenue Model
Revenue Component
Est. Contribution (per state)
Implementation
$200 – 300k
Transaction Fees
$150k* (annually)
Ongoing Services
$20 – 50k (annually)
*Assumes base fee of $.50 per transaction, 200,000 initial claims filed per year (recent NC avg.), 50% of term. employees assuming new roles within year
Slide5Next Steps & Future Applications
Next Steps
(next 1-2 Years)
Secure contract with state of North Carolina to build hybrid blockchain/database system & continue to refine platform technology and capabilities
Onboard North Carolina platform and train state employees to use system and communicate new requirements to companies employing people in the state
Begin writing and storing employment and unemployment records using
Benechain
Begin formalized contractual process with additional state employment agencies in the South East
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Additional Application Opportunities
(at least 3-5 years away)
2017
2018
2019
A
B
C
D
Fed Coin Currency:
Champion implementation of proposed currency to interact with
Benechain
applications
Food Stamps:
Provide better method of managing and distributing nutritional benefits through blockchain
Social Security:
Expand blockchain solutions to additional benefit programs at the national level like SS