National Apparel Giant Slashes Benefits Costs with 500%+ ROI

Until contacting DSI, the client hadn’t implemented a formal verification process across any of their business units. With their large size, young workforce, and high turnover rate, we knew we could save them a substantial amount of money as well as strengthen compliance among their many employees spanning 47 states as well as Puerto Rico, Washington DC and the US Virgin Islands.

Because federal law (ACA) requires employers to try three times to acquire the Social Security Numbers of dependents receiving coverage, our client asked us also to collect Socials during the dependent verification project.

Additionally, we worked with the client to enforce their Working Spouse surcharge and collected their attestations.

DSI used multiple custom high-impact mailings to reach out to employees in addition to email. And our web portal allowed each employee to safely and securely upload the required documents with ease.

We also proactively sent follow-up emails, called the client’s employees and even helped craft internal reminders to keep the project front and center in their minds.

Through clear and sensitive communication we received a 95.7% participation rate among the employees with 91.4% fully completing the process. To the client’s surprise, we found 7.5% of dependents to be ineligible for benefits. Our system removed those dependents immediately saving the client money on their investment. Not only did they save money by eliminating the 7.5% of dependents they shouldn’t cover, but the enforcement of their Working Spouse Surcharge now brought in an additional $91,000 annually. In the end, the client broke clear through the 500% ROI mark.

Whether you’re a national mega-brand like our client or a small regional retailer, the lesson learned is that a young workforce in a high-turnover environment is ripe for overspending on benefits. A comprehensive dependent verification project from DSI eliminates unnecessary spending and even increases revenue by merely enforcing the benefits rules as written.