American companies lose an estimated $22 billion annually paying for the healthcare of their employees’ ineligible dependents, according to Ceridian.
It’s new expanded version of its dependent verification services helps cut the rising cost of providing healthcare for employees.
“The cost of healthcare continues to be a top concern among employers,” said Jon Attwooll, manager of Ceridian Verification Services. “A dependent eligibility audit is one of the fastest, most effective ways for employers to reduce their total health care costs as well as future costs.”
With the new service, employees can submit proof of their dependent’s eligibility, which gives employers greater transparency into the healthcare savings identified by the audit.
“Our research shows that up to 15 percent of employees’ dependents receiving employer-provided medical benefits aren’t eligible to receive them,” Attwooll said.
By removing just one ineligible dependent from its health care plan an employer can save about $3,000, Attwooll said, regardless whether the plan is fully insured or self-insured.