Owen Sullivan Senior Benefits Consultant View Bio

Why Your Company May Want to Consider a Dependent Audit

At a time of escalating healthcare costs and changing regulations, you want to be certain your benefits budget is as lean as possible. If you manage employee benefits, you’ll save your company money by making sure you’re not covering ineligible dependents. The New York Times notes that conducting dependent audits “makes good business sense” and points out that the number of companies doing such audits continues to rise. When we helped a company of 600 examine the dependents they were covering, we discovered six ineligible dependents, saving the company $15,000.

Employees’ Lives Change

Managing your employees’ benefits requires agile record-keeping, because people’s family situations are always changing. Dependent children grow up, full-time students leave school, and people get divorced. Employees can easily overlook the need to keep your office up to date on their family changes, so it’s up to you to periodically check in with them.

Lowering Your Error Rate Yields a Good Return

Every plan pays some erroneous claims. Smart Business Online states that on average, anywhere from 3 to 15 percent of dependents don’t actually qualify for coverage. Once you’ve completed a thorough audit, you can build a robust updating routine into your benefits process, lowering your costs and minimizing the need for full audits in the future.

An Audit Streamlines Claims for Self-Funded Companies

Conducting a dependent audit can reveal sources where you’re overspending, and it can also save you money because you don’t have to go back later and unsnarl the problems when healthcare claims have been improperly paid. Also, such an audit helps keep your organization in full compliance with ACA and ERISA requirements. Finally, your risk is lowered when healthcare premiums and claims accurately match your actual risk pool.

Dependent Audits Give Your Employees Peace of Mind

Some employers fear that their employees may object to a dependent audit, because they have to produce school documents, birth certificates and so on. In fact, your employees will quickly realize that inaccurate insurance records could create an after-the-fact payment nightmare if a dependent needs medical care. A dependent audit assures your employees that they’re making the right coverage choices for everyone in their family.

Has your current broker discussed a dependent audit with you? Good insurance service is not just about doing the minimum; instead, it includes digging deeper into your coverage and making sure you’re paying to cover the right set of people. Lawley has the expertise to go beyond the minimum; we lower your costs because we leave no stone unturned. Contact our team today to learn more about whether it’s time for your company to conduct a dependent audit.

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