Do you know what a dependent eligibility program is and how it can eliminate risk and save your company money? There are three good reasons why every company should complete a Dependent Eligibility Program:
• ERISA Compliance. The DOL has stated in their strategic plan that they want to collect over $3B from companies who are not compliant with verifying that the dependents they are covering are eligible to receive healthcare. This is serious! And it is so easy for a company to be compliant – all they have to do is complete a DEV program!
• Savings – we guarantee that we will find at least 5% of covered dependents are ineligible, if a company has not recently completed a verification program. The cost per dependent for this year is estimated to be $6000. Savings add up quickly!
• High-cost ineligible claims. IF a carrier determines that an employer has covered a claimant that is ineligible and that claimant has high cost claims – ALL of the claims for that dependent become the employer’s responsibility. We have seen this result in $1M bill for employers. A DEV program protects the employer from this potentiality.
We have saved companies millions of dollars with our programs. An employer with 1,000 employees covering dependents will save at least $550,000 every year by removing ineligible dependents.
Let’s schedule a call to find out more to schedule a call for dependent verifications.