Dependant audits why

To demonstrate fiduciary responsibility, it's essential that your healthcare plan only covers those that it should and a dependent eligibility audit helps an organization demonstrate their due diligence should questions arise.

Ineligible dependents covered under the company's plan are a lose-lose proposition. They create unnecessary expenses and put the organization at risk. When an employer uncovers an ineligible employee, the following needs to be addressed while keeping regulations in mind:.

It's best to have these terms in place from the start and have consistent follow-through in all cases to help avoid lawsuits and reduce liability exposure. Our team recently hosted a webinar on Benefits Reconciliation , a solution that revolutionizes the benefits invoice.. Like clockwork, the Internal Revenue Service announces changes to retirement planning limits for the coming year.

The IRS has.. Be the first to know about our new solutions, upcoming events, and the latest industry research. Answer: Dependent audits are one-time or ongoing events that allow employers to validate the eligibility of dependents covered under their health and welfare insurance plans.

In other words, an audit assures employers that only eligible dependents are covered under their benefit plans, and that company-provided benefit dollars are allocated to entitled individuals. Question: What are the key drivers that can help determine if I have an issue with employees covering ineligible dependents?

Answer: Here are a few questions you can ask to determine if ineligible dependents are incorrectly covered under your benefits:. Question: We ask our employees to confirm their dependent eligibility each year during annual enrollment.

How is a dependent audit different? Lacks the necessary resources and expertise required to oversee an internal program. How is a dependent eligibility audit performed? Why consider an outside vendor? Inform employees of the audit results. Key Considerations when selecting an outside vendor. A few key considerations or questions to ask: How long has the vendor provided audits? Is the verification process employee and HR friendly? What level of employer customization is allowed?

What is included in the price and what may be extra? Comprehensive dependent verification. Maximum Return on Investment Few forms of health care cost containment activities provide such immediate savings.

Is it Right for my Organization? This type of dependent eligibility audit may be ideal if the organization has: Never conducted a dependent eligibility audit. Not conducted an audit within the last 2 years. Experienced high turnover or acquisitions. Affidavit-only Dependent verification. This type of dependent eligibility audit may be ideal if the organization: Has an internal compliance requirement. This communication is for informational purposes only; it is not legal, tax or accounting advice; and is not an offer to sell, buy or procure insurance.

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Inclusion of such hyperlinks on TriNet. Artboard Created with Sketch. Log In. Some samples of proof of dependent eligibility include: a birth certificate a marriage license a court document domestic partner registration form Once the documentation is received and verified, the plan sponsor can be confident that the dependent being covered is eligible to remain on the plan.

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