SOURCE: Pegasystems

Pegasystems

March 16, 2011 09:00 ET

Government Agencies Ill-Equipped to Process Entitlement Claims Efficiently, According to New Study

Pegasystems Survey Shows Eligibility and Entitlement Benefit Programs Need to Become More Efficient in Order to Meet New Laws, Eliminate Waste and Decrease Improper Payments

CAMBRIDGE, MA--(Marketwire - March 16, 2011) - Government agencies that deliver citizen services are falling short of mandates to process claims efficiently, based on a survey conducted by 1105 Government Information Group and commissioned by Pegasystems Inc. (NASDAQ: PEGA), the leader in business process management (BPM) software solutions. The agencies -- including the ones that manage Medicare, unemployment insurance and social security -- do not have adequate technology and resources in place, the survey found.

These findings come just as the Obama Administration is pressuring government agencies to eradicate nearly $50 billion in improper payments by 2012 (through the Improper Payment Elimination and Recovery Act). Meanwhile, the same agencies are experiencing increased demand on their social services programs, and flat or reduced operational budgets.

The survey reveals 70 percent of respondents felt they didn't have adequate resources and business processes in place, or could use more in order to efficiently process claims in a timely fashion. Meanwhile, 73 percent said an increase in automation would help their agency reduce the errors associated with eligibility determination and program enrollment. Perhaps even more telling, only 17 percent of respondents knew that their agency had a plan to address the new Improper Payments Act. 

The survey signals that agencies are playing catch-up, have not effectively communicated their plans among employees, and are lacking the modern technologies needed to streamline inefficient processes. Agencies have historically been heavily dependent on error-prone, manual processes enabling inefficient practices such as improperly processing disbursements  with the Thrift Savings Plan. In a March report to Congress identifying cost savings mechanisms, the independent Government Accountability Office targets improper payments as one of the largest areas to scrutinize.

The survey, conducted in February by the 1105 Government Information Group, the leading media company targeting public sector markets, included 290 responses. It polled management and senior management employees within government agencies.  

Supporting Resources:

To see more detail about the survey, visit: http://www.pega.com/resources/government-survey-agencies-struggling-with-delivery-of-citizen-benefit-services

To attend a March 23 webinar that analyst firm IDC and Pega are hosting on this topic, visit: http://bit.ly/hHMiAK

To read a blog discussing how eligibility and entitlement programs can become more efficient, visit: http://www.pega.com/community/pega-blog/effective-citizen-benefit-services-delivery-avoiding-improper-payments

For more information on Pega's solutions, visit: http://pega.com/solutions/by-industry/government

Quotes and Commentary

Dave Dantus, Director, Public Sector Industry Solutions, Pegasystems
"These survey results confirm that government agencies need to adopt modern process improvement technology at a quicker pace in order to become more efficient and get ahead of improper payments and unacceptable claims processing times. Pega's success in providing eligibility and enrollment solutions for organizations that do large-scale enrollments in both public and private sector clearly addresses the challenges highlighted in this survey."

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About Pegasystems
Pegasystems, the leader in business process management solutions and a leading provider of CRM solutions, helps organizations enhance customer loyalty, generate new business, and improve productivity. Our patented Build for Change® technology speeds the delivery of critical business solutions by directly capturing business objectives and eliminating manual programming. Pegasystems enables clients to quickly adapt to changing business conditions in order to outperform the competition. For more information, please visit us at www.pega.com.

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