Dependent Eligibility Audit
The purpose of a dependent eligibility audit is to identify dependents that should no longer be covered. Examples include children that have met maximum age or student status, divorced spouses, or children impacted by changes in custody arrangements. The advantage to an employer in performing an audit is reduced exposure to greater health care costs. Estimates are that 5 to 15 percent of covered dependents are not actually eligible. The average cost of a dependent on a typical health plan is $3,000 per year. Do the math!!
In addition federal regulation (ERISA) stipulates that plan benefits are only to be paid out on behalf of eligible plan members.
In addition federal regulation (ERISA) stipulates that plan benefits are only to be paid out on behalf of eligible plan members.
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