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February 3, 2015

Re-Enrollment Audit Produces Significant Savings

Business Situation:
Trustees of this group decided to conduct a re-enrollment of all dependents receiving benefits to ensure that only currently eligible dependents receive benefits going forward.

Client Profile:
  • Multi-employer Trust
  • 2,554 employees covering 5,103 dependents

Audit Finding:

The audit consisted of three main separate mailing phases and produced the following results following a 12-week verification period:

  • 206 dependents (4.04% of total) were determined to be ineligible either through voluntary removal or failing to meet eligibility requirements.
  • 303 dependents (5.94% of total) failed to submit all the required information.
  • 582 dependents (11.41% of total) did not respond to the audit.

 
Audit Benefits:
The Trust terminated coverage immediately for the 206 ineligible dependents in addition to 885 dependents that were incomplete or non-respondent.

First Year Savings Calculations

Average annual cost per dependent:                               $3,500
Annual savings for ineligible dependents removed:  $3,818,500
Return on investment:                                                         8,460%