DSI Blog

Dirty Dependent Pools and the Era of No Loyalty

It’s no secret that employee loyalty is not what it used to be. In fact, statistics confirm the trend: Millennials are expected to have an average of 5.9 jobs in their careers. In comparison, over a 40-year career, Baby Boomers have 2-3 jobs, while their predecessors, ‘The Greatest Generation,’ had 1-2 jobs. In addition to the huge impact this transient workforce has on talent retention and recruiting, employers have an additional problem: how to maintain a ‘clean’ benefits pool amid an increasing volume of new hires and existing employees adding dependents to health plans.

Dirty Dependent Pools and the Era of No Loyalty

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.

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