Chief Marketing Officer at Verifi1/National Health Care Consultant
There is a common misconception that Taft-Hartley Trusts and organized labor unions don’t want to participate in dependent eligibility verification. It is thought that the process of collecting employee documents and checking them for eligibility breaks a "code of trust" or isn’t in the best interest of union workers. This thinking however, is quite simply not the case. In reality, verification is a process that perfectly aligns with the mission on which organized labor unions and labor trust funds were founded - protecting and preserving the rights and benefits of employees and their families.
It’s easy to view the verification process as “intrusive”. When a company is asking for personal documents and taking steps to ensure employees are reporting their healthcare dependents correctly, it can make employees feel like “big brother is watching.” Many company executives incorrectly assume that participating in verification may be a hindrance to their organization and might also elicit push back from union members. Historically though, once labor unions and labor trusts become fully aware - and engaged - with the verification process, they serve as key advocates of the program to all involved participants. In fact, unions throughout the country have actively participated and championed dependent eligibility verification initiatives over the last decade and continue to do so presently.
Every time a healthcare claim is paid for an ineligible dependent, it threatens the healthcare coverage of every single active and retired union member, as well as the coverage of their eligible dependents. To protect union and labor trust employees from paying added costs (individually or through payroll deductions) for people who should not be covered, verification systematically identifies and removes all ineligible dependents from the company healthcare plan. Reducing ineligible dependents means eliminating unbudgeted healthcare costs - which ultimately leads to protecting benefit levels for all plan participants. According to Samuel Todaro, a health care specialist in organized labor and Taft-Hartley Trust programs, “every Taft-Hartley and union organization should support dependent verifications, because in the end, members wind up being protected and their families end up being protected from incurring unnecessary healthcare expenses.”
Paying claims for ineligible dependents can quickly add up on company healthcare plans and unbudgeted benefit expenses can add up to significant amounts. For example, Patrick Zlogar, legislative director at The Roffe Group P.C., said that "dependent eligibility verification helped New York State realize more than $50 million in annual savings.” Major automotive companies – who employ union labor – end up spending more money annually on their employee benefits than they do on steel to manufacture vehicles. Paying for people who aren’t entitled to company benefits can cost hundreds of millions of dollars. This wasted money ends up directly harming union employees, potentially causing employee layoffs or resulting in higher copays and prescription expenses.
With verification, companies can reduce costs incurred by ineligible dependents and use those funds to improve overall healthcare benefits and better manage organizational expenses.
Labor Trust and union leaders want to know that the communication processes involved in verification are comprehensive, timely, and succinct, while allowing individuals to "self-report” ineligible dependents without fear of retribution. With the right verification provider, the verification process provides a smooth, respectful experience for everyone involved. Unions and trusts should work with a provider who offers multiple communication channels, never asks for medical information and offers exceptional security of personal data. The process should begin by giving all employees advance notice so they understand why the company is conducting verification and how it benefits union members, both individually and as a group. Once in progress, verification offers “amnesty”, allowing employees with ineligible dependents to easily remove them, free of penalty or disciplinary action. Verification also includes an appeals process that gives employees with “ineligible” dependents the opportunity to provide documentation to evidence the eligibility of that dependent so they can be reinstated. A robust appeals process is of paramount importance and mirrors what unions have come to expect in any type of negotiated benefits with their management counterparts. The entire verification process is designed to feel efficient and respectful while aligning with unique union and labor trust needs. Outside of dependent eligibility verification, there is no other healthcare cost containment program that offers such immediate and sustained savings to an employer or fund, while protecting the level of labor trust and union employee benefits. To learn more about or to get started with the verification process, visit www.verifi1.com or call either 716-310-5203 or 248-562-6302.