Dependent Eligibility Audit Produces Substantial Savings
Business Situation
This client chose to conduct a dependent eligibility audit to verify whether enrolled dependents met eligibility requirements. To increase comfort levels among enrollees, the client requested a BMI representative visit on-site to address questions and collect documentation.
Client Profile
Resort and Casino
1,085 Employees Covering 2,285 Dependents
Audit Finding
The client achieved a 98% response rate to BMI’s verification mailing campaign which resulted in:
37 dependents (1.84% of total) as ineligible.
Reasons for ineligibility included overage dependents, voluntary removal, and divorces.
Audit Benefits
The client terminated coverage immediately for the 37 ineligible dependents who failed to meet eligibility requirements in addition to 130 dependents who did not complete or respond to the audit.
First Year Savings Calculations
Average annual cost per dependent:
$3,500
Annual savings for dependents removed:
$584,500
Return on Investment:
2,596%