A recent post on the Coverage Corner talked about companies conducting audits for dependents on health insurance plans. Now more attention is getting paid to the subject as companies that conduct eligibility audits are seeing a spike in business.
CNN reports that companies are expecting to see a 9 percent increase in their health insurance plans in 2011, due to increasing coverage costs and provisions in health care reform.
In order to cut costs, more companies that provide group health insurance are expected to conduct eligibility audits. Usually eligibility audits find 10 to 13 percent of dependents on health plans are actually not eligible to receive health care benefits.
As well as checking children on plans, many businesses are now conducting spouse audits. Some companies audit to see if a spouse has health insurance benefits through his or her employer, and if that is the case, a company may decide that he or she is ineligible for coverage or charge an additional fee.
Companies are also conducting spouse audits because many ex-spouses will remain on group health insurance plans after a divorce which make that spouse ineligible.
Removing ineligible dependents on a health insurance plan can save an employer an average of $5,000 a year for a spouse and $1,900 for a dependent between the ages of 19 to 25.
Don"t be surprised if your company conducts an audit soon — they are only trying to save money and keep health insurance costs low for employees.