Student Status Verification

When including Dental, Vision, Life or AD&D, employers often discover an eligibility requirement of student status in their Dependent Audit project.

This requirement means that, until approval of a school schedule from an accredited institution, they are not considered verified.

Think Student Status doesn’t matter? Guess again.

Sometimes prospective clients or brokers are confused about Student Status Verification. Some even try to tell us that Student Status doesn’t matter for Dependent Audits since ACA extended coverage to age 26 regardless of the status.

That’s NOT true.

  • ACA only extended mandatory coverage for dependents up to age 26 for medical
  • Dental and Vision plans, especially fully insured plans, often only provide coverage to age 19, unless a full-time student
  • Employer-paid Life insurance policies for dependents usually expire at age 19, unless a full-time student
  • Many employers are not aware of their own dependent eligibility requirements for dental/vision/life/AD&D because of HR turnover, broker turnover, inherited plans, changes from Self Funded to Fully Insured (and vice versa)

A professional Dependent Audit regularly includes Medical, Dental, Vision and frequently Life or AD&D. Even if employers pay little or no premium for the non-medical coverage, the claims for that plan impact all employees without regard to fully insured vs. self-insured. Also, the additional lines of coverage rarely result in a substantial cost increase for the audit due to the small numbers of employees who decline medical but enroll in other lines of coverage.

By including Dental, Vision, Life or AD&D, employers will often discover an eligibility requirement of student status in their Dependent Audit project. This requirement means that, while we’re able to verify some dependents as eligible for some lines of coverage (including Medical) with a simple birth certificate, we cannot for other coverage until approval of a school schedule showing the name of an accredited institution, term/quarter/semester, full-time status and student name.

For over a decade DSI has been a national leader in audit best practices through innovative communication and our proprietary technology, delivering clients improved compliance while reducing waste in spending. Contact us today for a quote and overview of what Student Status Verification would look like for your organization.