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Sure they're eligible? Checking could shave 10% off of health costs

Jared Bilski
by Jared Bilski
July 14, 2010
  • Accounting
  • Benefits
3 minute read
  • SHARE ON

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.).
Of course, you don’t want to think your own employees are actually  defrauding the company.
But with healthcare costs what they are, it doesn’t hurt to make sure everyone on your health plan actually belongs there. That’s why dependent care audits are on the rise.
Big savings uncovered
Dependent care audits are used to test if you’re unwittingly paying for any employee’s dependents who don’t meet your company’s eligibility guidelines for healthcare coverage.
And 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.
With the reform law extending the age dependents must be offered health coverage, it’s more important than ever to be sure your plan only covers “truly eligible” dependents.
Steps to take first
After picking out the audit provider and arranging alternative options for removed dependents, communicating with the workforce is vital. Here’s what should be included:
•    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.).
Info: http://bit.ly/audit357Of course, you don’t want to think your own employees are actually  defrauding the company.
But with healthcare costs what they are, it doesn’t hurt to make sure everyone on your health plan actually belongs there. That’s why dependent care audits are on the rise.
Big savings uncovered
Dependent care audits are used to test if you’re unwittingly paying for any employee’s dependents who don’t meet your company’s eligibility guidelines for healthcare coverage.
And 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.
With the reform law extending the age dependents must be offered health coverage, it’s more important than ever to be sure your plan only covers “truly eligible” dependents.
Steps to take first
After picking out the audit provider and arranging alternative options for removed dependents, communicating with the workforce is vital. Here’s what should be included:
•    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.).
Info: http://bit.ly/audit357

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