By now, most employers are well aware of the primary factors which prompts their enterprise to conduct both initial and ongoing dependent eligibility verification reviews. In a nutshell, this service provides an almost immediate savings to your sponsored benefits plan (as much as $5,000 realized per ineligible dependent removed), it protects your organization against catastrophic claims from dependents who should not be covered, and it reduces paid claim costs this benefit year, thereby lowering healthcare costs in future years.

Recently, I was chatting with the Director of Promotions at a large casino resort company about her experiences with requiring their valued customers (also known as “loyalty club members”) to provide documentation in order to receive casino sponsored giveaways such as concert tickets, merchandise, and trips.

Many people not familiar with dependent eligibility verification programs, incorrectly assume that this initiative is solely designed to identify employees who are “gaming the system” by knowingly having their employer extend corporate sponsored benefits coverage to individuals who don’t qualify as bona fide dependents.

With the current state of uncertainty in the healthcare market, brokers and consultants are working tirelessly to ensure that they maintain their value to their clients. Many are taking steps to cement ties with their customers by introducing additional products and services, and attempting to create additional loyalty to ensure long term working relationships.

Dependent eligibility verifications are widely considered to be an essential tool when evaluating ways to save on ever rising health care costs. At their core, these programs ensure that valid relationships exist between employees and their dependents. They are typically cost effective programs designed to be simple to administer by benefits and human resource departments.

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 the union workers.

Employee benefits administrators are confronted with multiple moving parts during the day-in, day-out focus of the job. However, it takes even more work to uncover issues that need to be addressed, particularly when it comes to dependent eligibility.