With the reform law extending the age to which dependents must be offered health coverage, it’s more important than ever to be sure your plan only covers “truly eligible” dependents.
Dependent care audits are used to test if you’re unwittingly paying for any employee’s dependents who no longer meet your company’s eligibility guidelines for healthcare coverage.
The numbers are there to support the move.
The average dependent care audit finds that around 4-8% of dependents are actually ineligible, which translates into potential savings of between 2% and 10% – according to Aon Consulting.
If you plan on auditing dependents, there are certain steps that need to be taken on your end — to ensure the process is as simple and painless as possible for workers.
After picking out the audit provider and arranging alternative options for removed dependents, companies should offer:
- Detailed explanations about why the audit is taking place, the steps you’re taking to protect staffers’ confidential info and a way to contact the audit company in case of questions, and
- Info about all the documents that are needed to verify dependent eligibility (marriage license, birth or adoptions certificates, etc.).