Dependent Eligibility Audits

Why Perform a Dependent Eligibility Audit?

money resized2        With the high cost of health care, most employers are struggling to provide competitive
      health benefits for eligible plan members - let alone ineligible ones. Family dynamics are
       changing - the traditional family unit is becoming less common and single-parent and
       "blended" families are more prevalent. Whether intentional or not, employees often enroll
       plan members that are not eligible according to the plan documents.

Fast Facts:

Health plan expenses are one of the fastest growing cost components for employers.

Health insurance premiums have increased 5 times faster than inflation and wage growth.

3 to 9 percent of covered dependents usually don't meet a health plan's definition of an eligible dependent.

The average cost per dependent is generally over $2,500 per year.

For every audited dependent, we have seen $225 to $400 in annualized savings.

Ford Motor Company identified 40,000 ineligible dependents in its ground-breaking audit

The goal in performing an audit is to reduce plan costs by eliminating benefits to those who are not eligible for
them. It is also a great opportunity to establish better controls relative to future enrollments and to minimize
unintended tax consequences.

Advantages to Choosing the Center for Benefits Management

Frequently Asked Questions