Dependent audits represent an interesting proposition for employers.\u00a0 On the one hand, HR (benefits) and Finance are eager to \u201cpull back the curtain\u201d to see what savings can be achieved by cleaning up dependent rolls.\u00a0 On the other hand, the notion of exposing employees to an audit can be daunting. \u00a0It\u2019s perceived as highly intrusive, even insulting, by some employees.\u00a0 Past practices tend to influence future thinking.\u00a0 \u201cWe can\u2019t even get our people to enroll on time,\u201d is a how the conversation usually starts.\u00a0 \u201cHow in the world would we get them to show us they were married 20 years ago!\u201d<\/p>\n
Then along came a little piece of legislation known as health care reform.\u00a0 With the onset of PPACA, employers are now covering dependents longer.\u00a0 Thus, we\u2019re finding more employers opting to audit in the short-term as a way of tightening up eligibility and enrollment practices and policies for the long-term.\u00a0 It makes sense.\u00a0 If you have to cover dependents longer, might was well do what you can to make sure they are truly eligible for coverage.<\/p>\n
But if you audit, will they participate?\u00a0 The answer is yes, but it requires the right perspective.\u00a0 What follows is one example of how our client shattered perceptions by conducting an audit that resulted in 100% employee participation.<\/p>\n
MOL America, Inc. is a transportation and logistics company headquartered in New Jersey with field employees sprinkled around the country.\u00a0 The company covers approximately 300 employees and 650 dependents under its benefits plans.\u00a0 MOL selected Vantagen to serve as its independent third party dependent auditor.\u00a0 Audit planning began in March 2011.\u00a0 Audit communications were set to begin in late April with full completion anticipated by early August.<\/p>\n
The MOL America audit featured an amnesty period where dependent eligibility definitions were clearly reinforced and employees were provided an opportunity to drop ineligible dependents.\u00a0 That phase was followed by the Primary Verification Period, the main documentation collection period, as well as Secondary Verification Period whereby targeted communications were issued to employees based on their participation (or lack thereof).\u00a0 Once these phases were complete and the client signed off on the projected drop scenario, termination notices were issued that afforded the impacted employees with the option of appealing the action.<\/p>\n
Results: Success Factors: Summary<\/strong> Dependent audits represent an interesting proposition for employers.\u00a0 On the one hand, HR (benefits) and Finance are eager to \u201cpull back the curtain\u201d to see what savings can be achieved by cleaning up dependent rolls.\u00a0 On the other hand, the notion of exposing employees to an audit can be daunting. \u00a0It\u2019s perceived as highly intrusive, […]<\/p>\n","protected":false},"author":1,"featured_media":2282,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[23,18,12,16],"class_list":["post-382","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-dependent-audit","tag-hr-audit","tag-hr-consulting","tag-human-resources"],"yoast_head":"\n
\n<\/strong>The audit wrapped just ahead of the original August target.\u00a0 By the audit\u2019s conclusion, it achieved 100% employee participation and a 3% reduction in covered dependents.<\/p>\n
\n<\/strong>They can be boiled down to three:<\/p>\n\n
\nWith the right strategy and the right amount of involvement, employers can sanction dependent audits that can shatter upfront, current world perceptions and achieve optimal participation.\u00a0 The auditor can handle the heavy lifting when it comes to calls, document processing and communication, however it\u2019s the employer\u2019s contributions that can help push participation from OK to exceptional.<\/p>\n","protected":false},"excerpt":{"rendered":"