DSI Dependent Audits

Dependent Audits that save you real money

Conduct Dependent Audits using DSI’s proven, employee first, approach and see the difference.

Our Employee Support is the best in the industry and one of the many reasons 100% of clients agree to be a reference.

Did you know?

Dependents make up 70%+ of employer benefit costs, but on average 4-8% of claimed dependents are ineligible.

What are Dependent Audits?

Dependent Audits are a systematic method of verifying the eligibility of dependent participants in a benefits pool to identify ineligible dependents and remove them from the benefits plan.

The average dependent with benefits costs U.S. employers over $3,000 each, and spousal dependents regularly average $5,000 or more. Because of the high cost of offering benefits to dependents, businesses across America have embraced dependent eligibility audits to ensure they only incur costs for legitimate, eligible dependents.

Dependent Audit from DSI
Dependent Audit from DSI

Why do companies verify Dependent Eligibility?

While each organization is different, companies will usually conduct a dependent audit for two key reasons:

Cost Reduction

Companies often attempt to Eliminate health care spending on ineligible dependents through a Dependent Audit.


Companies must stay in compliance with a variety of regulations including ERISA and Sarbanes-Oxley.

What is the best way to remove ineligible dependents?

The most effective method to remove ineligible dependents, with minimum business disruption, is an outsourced Comprehensive Verification Audit, where documents for every dependent in a company’s benefit pool are authenticated.

We recommend that you work with an experienced vendor who gets proven results while preserving company culture. After all, savings shouldn’t sacrifice employee morale.

Dependent Audit from DSI

Ineligibility by the Numbers

Average number of dependents covered by employees in a Dependent Audit


Rate of ineligibility expected in a dependent pool


Higher claims cost of ineligible vs eligible dependents

Average Ineligibility Rates by Industry

Agriculture: 7.8%

Automotive: 6.3%

Education: 8.2%

Energy: 5.5%

Health Care: 6.1%

Hospitality: 9.3%

Manufacturing: 4.9%

Public Sector: 7.9%

Retail: 9.6%

Technology: 2.2%

Trucking: 4.8%

Unions: 8.6%

Dependent Audits reduce wasteful spending, improves plan compliance and raises employee appreciation of their health benefits.

Benefits of Dependent Audits

Eliminate ineligible dependent spending, immediately reducing overall health care costs by 5% or more, whether you are self-funded or fully insured.
Reduce future health care costs. Removing ineligible dependents from your plan today will result in big savings immediately and in the future, both on claims and premiums.
Improve employee understanding of health care costs. The verification process is a perfect communication opportunity to re-educate employees on their own benefits.
Strengthen plan compliance under Sarbanes-Oxley, ERISA and DOL guidelines.

DSI Clients

DSI proudly serves organizations of all sizes from a variety of industries