Given the state of the economy, employers are looking for immediate ways to reduce spending. A dependent eligibility audit is a pressing and necessary cost savings opportunity. In our experience, it is not unusual when one month's savings from a comprehensive dependent eligibility audit covers the cost of the project
Dallas, TX (PRWEB) February 17, 2009
HRAdvance, a leading provider of dependent eligibility audit and verification services, today announced its audits have produced more than $100 million in client health plan savings. "We entered this market expecting to reduce health plan costs, improve controls on the enrollment process and manage fiduciary compliance risk. Based on the results from our initial 50 audit projects, it's a proven addition / enhancement to effective plan oversight," said Craig Firestone, President and founder. "We're seeing more rapid adoption of this practice" added Firestone, who expects the firm to complete another 100 audits over the course of 2009."
HRAdvance clients range in size from 500 to 90,000 employees. HRAdvance's comprehensive audit projects are detecting an average of 12% of enrolled dependents are ineligible. "When we look at the distribution of these results over our clients, 85% of the comprehensive projects exceed 10% ineligible dependents. We also analyze the distribution of results across industry type and reach similar conclusions. It's a compelling savings initiative," said Firestone.
An effective risk management program doesn't end with the comprehensive audit project. To retain and extend the savings, employers should implement a gatekeeper solution, such as HRAdvance's Plan-Guard™. "We see astonishing behavior from employees - especially those who try to re-enroll the ineligible dependents identified through our comprehensive Plan-Smart™ audit," said Chris Heinefield, VP of Operations for HRAdvance.
"Given the state of the economy, employers are looking for immediate ways to reduce spending. A dependent eligibility audit is a pressing and necessary cost savings opportunity. In our experience, it is not unusual when one month's savings from a comprehensive dependent eligibility audit covers the cost of the project," said Brennan Clipp, SR Vice President of Sales and Marketing for HRAdvance. "HR and Benefit professionals are being asked to step-up and deliver. A dependent eligibility audit is a great chance to do just that," added Clipp.
Comprehensive and ongoing dependent eligibility review is a necessary enhancement to the internal controls we've traditionally associated with benefits enrollment. Employer-sponsored health plans have emphasized convenience and expediency, relying solely on an attestation from the employees to evidence dependent relationships. Traditional enrollment processes no longer meet the basic needs of the fiduciaries administering health plans.
Employers are struggling to contain costs in today's labor market and should closely evaluate the cost-benefit relationship of current enrollment processes. A dependent eligibility audit is an effective cost-measurement technique. The cost side of the equation varies by employer, but represents a risk to the preservation of plan assets and may needlessly reduce the plan sponsor's operating results. Many employers should also consider fiduciary liability and the tax implications of pre-tax premiums attributable to ineligible dependents: ERISA/Exclusive Benefit Rule, Section 125 Pre-Tax Contributions and Sarbanes-Oxley compliance for public companies.
If you are worried about employee resistance, Heinefield emphasizes that employee feedback is encouraging. Most realize a greater appreciation of their health benefits as a result of our supportive Plan-Smart™ process. Not unlike popular consumer-directed initiatives, a dependent eligibility audit is a means by which employees come to appreciate a fiscally sound health plan in today's labor market.
HRAdvance was founded in 2004 with a narrow mission in mind: To provide HR and Benefit professionals with best-of-breed hosted solutions that can be deployed with minimal capital expenditure or IT dependency. Our Guiding Principle: We believe that employees are the most valuable asset of virtually every organization.
Our core competency is Plan-Smart™ and Plan-Guard™ dependent eligibility audit and verification services. With more than 130 audit clients that range in size from 500 to more than 100,000 employee lives, HRAdvance is seen as the leader and best of breed solution for dependent eligibility audit solutions. Our management competencies and healthcare focus reflect over 100 years combined experience in developing automated human resource, benefits, administrative and financial solutions for government, public and private organizations. Our background and experience assures that every client and their employees will be served by a firm with the greatest possible familiarity with your industry, an acute understanding of your workforce and first hand appreciation of the value every employee represents. Visit http://www.hradvance.com to learn more.