There’s more to profitably managing employee benefits than getting the details right. Timing matters too. For employers seeking to optimize their benefits plans and maximize savings, the question of when to conduct dependent eligibility verification and other coverage verification audits is crucial. Let’s look at why the period immediately following open enrollment is the ideal time for this critical process.
The Payoffs of Post-Enrollment Verification
Conducting DEV and working spouse verification audits right after open enrollment is a strategic move that can yield significant benefits for employers. This timing ensures that only eligible spouses and dependents are included in the plan from the very start of the new benefit year, eliminating unnecessary costs and potential compliance issues.
An important factor to consider is that the period following open enrollment typically sees an increase in healthcare utilization as employees and their dependents seek to take advantage of new or reset benefits. By conducting verification at this time, employers can:
- Prevent ineligible dependents from incurring costly claims
- Reduce the overall financial burden on the plan
- Ensure that resources are allocated to truly eligible participants
- Ensure employer fiduciary responsibility is met
Maximizing Cost Savings
It is common for employers to overlook ineligible dependents for extended periods of time, including spouses that have other coverage available, running up unnecessary costs until the oversight is corrected. At that point, there is typically no going back to recoup the costs.
Employees receiving benefits for ineligible spouses and dependents can’t always be expected to report life changes and discrepancies themselves; after all, the situation is working in their favor for as long as it lasts.
Taking a proactive approach to disqualify ineligible dependents right after open enrollment can lead to substantial savings. For example, consider a company with 1,000 spouses enrolled, at an annual cost per spouse of $7,000. If 10% of these spouses are ineligible, you’re paying $700,000 in unnecessary costs over the course of a year. The earlier you verify, the better it is for your bottom line.
Ensuring Regulatory Compliance
Regular audits help employers stay compliant with plan policies and regulatory requirements such as the Consolidated Appropriations Act (CAA), ERISA, etc. By verifying dependent eligibility early and consistently, companies can demonstrate due diligence in managing their benefits programs.
Improving Data Accuracy
Accurate plan data is essential for effective benefits administration. Post-enrollment verification ensures that the most up-to-date information is captured, leading to:
- More precise budgeting and forecasting
- Improved reporting and analytics
- Enhanced ability to make informed decisions about future benefits offerings
Streamlining the Verification Process
To maximize the effectiveness of dependent eligibility verification and other coverage verification, employers should consider the following best practices:
- Clear Communication: Inform employees about the upcoming audits during open enrollment, setting expectations and reducing potential pushback.
- Adequate Time Frame: Allow sufficient time for employees to gather and submit necessary documentation.
- User-Friendly Submission: Partner with a dependent verification company, such as Consova, that offers streamlined, digital methods for document submission with a focus on the employee experience, and a proven track record of securing substantial savings for employers.
- Ongoing Verification: Consider implementing an ongoing dependent verification and spouse re-verification process to maintain eligibility accuracy throughout the year.
Balancing Savings and Employee Satisfaction
While the primary goal of dependent eligibility verification and working spouse verification is to reduce costs and ensure compliance, it’s important to approach the process with sensitivity to employee concerns. A well-executed audit can actually enhance employee satisfaction by:
- Demonstrating the employer’s commitment to fair and equitable benefits distribution
- Potentially reducing premium costs for all employees by eliminating ineligible participants
- Providing an opportunity to educate employees about their benefits and eligibility requirements
The Role of Advanced Verification Solutions
Modern dependent verification services offer streamlined, efficient processes that can significantly reduce the administrative burden on HR teams. These advanced solutions provide:
- Seamless and easy integration with existing benefits platforms
- Automated document collection and verification
- Real-time reporting and analytics
- An enhanced employee experience through user-friendly interfaces
By leveraging these innovative tools, employers can conduct thorough audits without disrupting daily operations or overwhelming their staff.
A Strategic Approach to Benefits Verification
Timing dependent eligibility verification and other coverage verification audits to coincide with the post-open enrollment period is a strategic move that can yield significant benefits for employers. By identifying and removing ineligible dependents early, companies can realize substantial cost savings, improve compliance, and enhance the overall integrity of their benefits programs.
As you consider implementing or optimizing your dependent verification process, realize that bringing in a partner who specializes in the process can make all the difference. Consova offers cutting-edge solutions designed to streamline the verification process, maximize savings, and improve employee satisfaction. Our advanced technology and deep industry expertise enable us to deliver measurable financial impact while ensuring a smooth, user-friendly experience for both employers and employees – The easiest way to verify dependents.
Ready to upgrade your dependent verification process and unlock significant savings? Contact us to learn how our customized, efficient solutions can help you get it done the right way.