A typical dependent eligibility audit finds that between 6 and 16 percent of dependents are ineligible for the company health plan.
The list of ineligible covered persons might include:
- employee children who are older than 26;
- kids who aren’t legally an employee’s child;
- a domestic partner’s child; or
Audits also find that:
- employees haven’t really married; or
- people were married and divorced without telling human resoruces.
For smaller companies with less than 1,000 employees, the human resources executive may handle a dependency eligibility audit, simply by making a list of employees with dependents on the company plan, asking for supporting documents, and checking them off as employees produce them.
For an easier alternative, some firms simply ask employees for an affidavit stating that their dependents are legally theirs. But certification isn’t terribly effective as a willingness to lie may not be dissuaded.