EPPICard: Are Your Unemployment Benefits Safe?

Certainly I would be the first to tell a person, a business, a government entity the importance of information technology. But I would also tell them that information technology management is equally important. As recent experience has shown us, government programs like with Fannie May and Freddie Mac, sometimes it is not the program that is problematic or corrupt but the oversight of that program. Well none has been as true as the recent EPPICard fiasco.

EPPICard is the company that many states have contracted with to provide an automated method for recipients to access their funds. While government programs do indeed need an electronic means of accessing benefits it is equally important that the firm, in this case EPPICard, that takes over the information technology management duties be reputable, honest and have the utmost integrity.

These don't seem to be the adjectives associated with EPPICard. Recent news out of more than a few states that have contracted with EPPICard to handle payments for child support and unemployment to its eligible recipients alleges fund mishandling and irregular accounting leading to frustrated program administrators and customers alike. The program recipient has only one method of contact, their government program representative. This is a scary thought now that health care reform is on the horizon and the Obama administration will be looking for an outside information technology management service to help control the new medical programs.

Not only has there been money reported missing out of their EPPICard account but the fees that consumers have been charged are exuberant. A family needing help certainly does not an additional burden. Not that a business, namely EPPICard, does not have the right to earn a buck. After all, that is what makes America great. But the USA is also a land of people that help each other and are protected from unfairness.

So whose responsibility is it to make sure these charges are fair? Again, the government is not in the business of information technology management yet it does affect the benefit delivery and program effectiveness. I say it is the government's responsibility to better negotiate with these information technology service companies to not only lower the contract prices that the government pays but also limit the fees that recipients are charged.

EPPICard now handles benefits for many states and it is estimated that each state under contract is paying several million dollars to EPPICard without counting per fee charges. It seems the contract negotiations with EPPICard, or any other company, could include a no-fee clause for these program recipients that are already under financial hardships. It makes a person wonder if anyone in the administration has interest in these contracted services. Bottom line is that someone at a high government level needs to oversee the EPPICard contract and ensure consumer protection.

Other articles by this author:

Sources:

http://www.makli.com/eppicard-006489/

http://personalmoneystore.com/moneyblog/2009/09/08/eppicard-scams-poor-service/

http://www.eppicard.com/vaedcclient/index.jsp