Dependent Eligibility Audit
Verifying dependents decreases benefits costs and improves compliance

Dependent Eligibility Audit

Ineligible dependents cost businesses millions of dollars in annual health plan expenses. Rather than implementing cost-cutting measures like reducing benefits or increasing co-pays (which employees are not fans of), dependent eligibility audits can identify those individuals who are not eligible to participate in a company’s benefit plan. Dependent eligibility audits are a best practice in employee benefits. 

By ensuring that only eligible participants are receiving coverage, you can save money and stay compliant. If you’re self-funded, you can eliminate stop-loss exposure and ERISA violations if applicable and SOX issues (if you’re a public company). The monetary savings to the employer can be significant, with an average of 6% of covered dependents deemed ineligible for continued coverage.