Burying the Announcement
Employers must give thought when building their Open Enrollment communications.
Carrier changes, plan design changes, and premium changes typically take center stage in Open Enrollment. However, informing employees about the upcoming Dependent Verification needs proper real estate and emphasis in your communications. Successful, quiet Dependent Verification projects are built on a foundation of employee awareness. Open Enrollment is the best time to inform employees that any enrolled dependents are subject to eligibility verification. Not only will it deter the enrollment of ineligible dependents, but it also sets the stage for both high and early participation in the document collection period.
Calling it a "Dependent Audit"
While it's typical benefits industry vocabulary to say "Dependent Audit," we view "audit" as a word to avoid when communicating with employees. The word "audit" is a negative word commonly associated with the IRS, stress, work, fines, being singled out, and being a victim. Instead of "Dependent Audit," wise employers use phrases like "Dependent Verification Project," "Compliance Initiative," or "Dependent Eligibility Requirement." Avoiding the word "audit" should be embraced by the vendor, the executive team, and Human Resources, and you should avoid it in verbal and written communications.
Saying It's About Money or Savings
As a best practice, employers should not mention savings when announcing Dependent Verification. Annual increases in employee cost-sharing, increasing deductibles, and plan design changes can frustrate employees and make Open Enrollment the worst time to discuss saving the company money. Savvy employers call the new requirement an act of Compliance and may even mention ERISA, Department of Labor, or Sarbanes-Oxley (if applicable).
Employers should work with their Dependent Audit vendor on the language used in the Open Enrollment announcement to maximize effectiveness.
Failing to State When Documents Are Collected
Suppose employees learn about an upcoming Dependent Verification requirement but don't know when to submit documents. In that case, they will start to ask avoidable questions, which is what Human Resources teams do NOT want during Open Enrollment. As a best practice, employers should communicate clearly with employees that documents will be collected in January, for example, and to wait for instructions mailed to their home by ABC Company (the vendor). To go a step further, employers may even state the deadline for their employees to submit the documents, i.e., January 31, 2023.
Going Into Too Much Detail
It may sound contradictory to the previous tip, but it is possible to provide too much information to employees, which leads to questions. Communication to employees should state the vendor selected, the month employees can expect to hear from that vendor, and that verification documents will include relationship-verifying documents such as Birth Certificates and Marriage Licenses where applicable. A huge mistake is to list all of the acceptable documents in Dependent Eligibility Verification for employees, especially if Domestic Partners and their children are eligible for coverage. Employers should keep it simple.
Announcing an upcoming Dependent Eligibility Verification requirement during Open Enrollment is a winning strategy. However, avoiding these five mistakes will make the announcement more effective and minimize the noise HR doesn't need during Open Enrollment.
