Sure they're eligible? Checking could shave 10% off of health costs
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.).
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
Free Training & Resources
Further Reading
CFOs know not all prospects are what they claim to be. Potential clients will stretch the truth to get a line of credit that’s bigger...
The Department of Labor (DOL) is once again taking a neutral stance on offering a certain investment option to retirement plan participants...
Open enrollment may feel far away. It isn’t. Summer is when benefits planning for 2027 starts taking shape. Health benefits are one of...
Publicly traded companies that offer stock options may want to touch base with their tax accountants. That’s because the IRS is l...
The Securities and Exchange Commission (SEC) can no longer deny a party charged with securities fraud to a jury trial in a federal court. ...
Employers located or doing business in the U.S. Virgin Islands may avoid the 2026 FUTA credit reduction flagged earlier this year. The terr...