California to Issue Debit Cards For Disability, Family Leave Benefits

Prepaid load values are about to get another big bump as Bank of America deploys prepaid cards for the state of California. This article indicates that:

“Californians drawing disability insurance and paid family leave will soon use EDD-issued debit cards to get their money as the state’s massive benefits programs phase out traditional paper checks.”

“The move from paper to plastic – announced Tuesday – is scheduled to be completed by March and is expected to save the state’s Employment Development Department about $4 million initially while giving disability and family leave recipients quicker and easier access to their money.”

This is a prelude to the potential $23 billion bump in prepaid load which will be driven by California adopting Prepaid for State Unemployment which is expected to begin rollout in June:

The EDD issued 41 million checks in 2010 paying a total $27 billion in unemployment, disability and paid family leave benefits, state employment officials reported.

Nearly $23 billion of that was paid out in unemployment benefits last year as the state’s jobless rate soared into 12 percent territory.

Read more: http://www.sacbee.com/2011/02/02/3370170/california-to-issue-debit-cards.html#ixzz1CpcNd6AJ

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