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.
- Multi-employer Trust
- 2,554 employees covering 5,103 dependents
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.
The Trust terminated coverage immediately for the 206 ineligible dependents in addition to 885 dependents that were incomplete or non-respondent.
Average annual cost per dependent: $3,500
Annual savings for ineligible dependents removed: $3,818,500
Return on investment: 8,460%