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%

Audit Finding of the M..., BMI Audit Services, Dependent Eligibility ..., eligible dependent, Ineligible Dependent A..., re-enrollment auditRandy Light, Founder + Executive Advisor