Your company can save between 5-10% on employee costs with a Dependent Eligibility Audit. Nationally recognized consulting firms like Pricewaterhouse Cooper have determined that 1 in 10 dependents covered under an employer’s health plan are actually ineligible for coverage.
Examples of ineligible dependents are those who are legally separated, divorced, and part-time college students.
The average cost of dependent coverage ranges from $2,400 -$5,400 per dependent per year. Up to 15% of dependents on an employer’s plan may be ineligible, and eliminating these ineligible dependents would save your company significant money.
Among the many compliance issues that employers’ face today, one that is frequently misunderstood is the fiduciary liability imposed by ERISA. In simple terms, you risk ERISA fines and possible disqualification by not being vigilant in determining the eligibility of those covered under your company’s health care plan. We guarantee your legal compliance to prevent fines and possibly disqualification from ERISA, as well as save your company money directly.
By outsourcing your employee dependent verification, you’re removed from the process and are less likely to be cast in a negative light. This process can also generate anxiety among employees if not handled properly. We tailors our services to meet your company’s requirements and help maintain your employee understanding and satisfaction.
We solve these problems by developing a clear strategy with you that includes your company’s culture along with gathering all pertinent information about the current enrollment, the plan designs, and the definitions of dependents. Some States have specific rules regarding who qualifies as a dependent, so this must be taken into consideration as well.
The dependent eligibility audit is an inexpensive yet powerful tool that can help you reduce rising health care costs by as much as 5-10% without cutting back on employees benefits. Our engagement with your company begins with a discussion that will gain the understanding of your corporate culture and clarify the role we will play in the dependent verification process. Once this has been accomplished, the formal project can move ahead with an agreed to timeline.
If you’d like to learn more about how a 3rd party dependent eligibility audit can help your company save money, or if you have any questions at all, call us and we’ll gladly answer any questions you have.