relatively few ineligible dependents need to be identified and
terminated in order to pay for the audit; and
-- An ineligible dependent terminated now is stopped from filing future
claims, resulting in significant long-term cost avoidance.
When the rationale for a dependent eligibility audit is clearly
explained to employees, they understand the need for their employer to
verify health plan eligibility. This does not translate into a lack of
trust. Employees apply similar principles in their personal lives, when
-- Count correct change received in a retail transaction;
-- Check bank and/or credit card statements to ensure credits were
-- Call to see if their children are where they said they were going to
-- Review their pay stubs to ensure they were paid for all hours worked
and all deductions were properly taken.
Employees know these actions make common sense. It's a part of a life philosophy President Ronald Reagan famously characterized as "trust but verify" when he would admonish Soviet leader Mikhail Gorbachev in their negotiations.
Findley Davies believes employers can apply this philosophy, audit best
practices, and audit lessons learned to optimize their dependent
eligibility audit results and preserve employee relations. Based on our
audit experience, best practices include:
-- Effective employee communications is essential and includes explaining
the reasons for the audit, the consequences of not complying, and
following up with a thank you and recap of results;
-- Use of an amnesty period to encourage employees to quickly act without
penalty to remove ineligible dependents;
-- Establish firm deadlines to respond to the audit;
-- Use of a Call Center to which employees can call to receive
instructions on where to obtain required documentatio
|SOURCE Findley Davies, Inc.|
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