Dependent fraud in the U.S. has increased since the passing of PPACA, prompting employers to look for additional means to contain health care costs and maintain compliance with ERISA and their own plan documents. Some third party administrators, including DSI, offer solutions to manage the dependent eligibility of newly enrolled dependents and monitor dependents turning age 26. The maintenance of a dependent benefit pool is not a substitute for a comprehensive dependent audit, but a follow-up to an initial audit. This ongoing maintenance strategy is also not a permanent solution. Clients should do periodic working spouse audits to re-verify marriages and/or domestic partner benefits, as ex-spouses cost an average of $5,100 annually to plan sponsors.
While employers often pay a vendor to manage dependent eligibility through automated, non-intrusive means, some Brokers pay for their clients as a value-added service. Set-up can be as easy as a standardized monthly file feed, and the cost can be as low as $0.50/employee per month.
The best thing you can do is work with a proven vendor who cares about your employees just as much as you do. At DSI, we focus on employee comfort first and that’s why 100% of our clients agree to be a reference for us.
Avoid dirty dependent pools and contact us today for a free consultation.