Posts Tagged - ‘businesses’

Post border

Employers Audit Group Health Insurance Dependents

Friday, June 4th, 2010

Image: joebeone under CC 3.0

A large percentage of many employers’ costs consist of their benefits packages, including health insurance coverage. Even the partial cost of an individual employee or a family can be significant. Now, recent reforms force companies to further expand their family coverage to all adult dependents under the age of 26, regardless of whether or not they’re enrolled in college.

As a result, firms are looking to save money. Therefore, more of them are conducting audits–meant to find out if the non-employees they are paying for truly are related dependents of their workers. They will be dropped from your policy if you can’t prove that they are. You may even have to pay back the money spent on their health care. The worst part is that if you ignore the audit, legitimate dependents could be dropped, too!

Generally, nephews and nieces and ex-husbands or wives aren’t considered dependents by most companies. Experts believe that a business with 10,000 employees could save up to $1 million per year on its group health insurance expenses through auditing.

Post border