Our research shows that up to 15 percent of employees' dependents receiving employer-provided medical benefits aren't eligible to receive them
St. Petersburg, FL (PRWEB) February 22, 2010
Ceridian Corporation, a leading provider of managed human resource and employee benefits administration services, introduced today an expanded version of its dependent verification services for companies looking for a fast, reliable way to cut the rising cost of providing health care for employees.
"The cost of health care 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."
Ceridian expanded its verification services to make it easier for employees to submit proof of their dependent's eligibility and to give employers greater transparency into the health care savings identified by the audit. Click here for more information.
For more than a decade Ceridian has offered dependent audits, in which companies request proof that employees' dependents, such as spouses and children, qualify for medical benefits. However, the spiraling cost of health care, combined with employers' increased focus on expense management, has increased demand for this service as a proven cost-containment strategy, Attwooll said.
American companies lose an estimated $22 billion annually paying for the health care of their employees' ineligible dependents, according to Ceridian. On top of that, employers are now finding that factors such as high divorce rates and blended families are leading to even higher numbers ineligible dependents, Attwooll said.
"Our research shows that up to 15 percent of employees' dependents receiving employer-provided medical benefits aren't eligible to receive them," he 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.
"The savings that result from dependent audits are immediate and often staggering, ranging from tens of thousands to hundreds of thousands of dollars, even millions, depending on company size."
Not only are dependent audits a way to curb the runaway costs of health coverage, Attwooll said, but they also provide a way for employers to ensure that their benefit plans are administered consistently and fairly to all employees.
Ceridian is a global business services organization that offers a comprehensive range of innovative solutions. From human resources and benefits to accredited employee assistance, work-life and health and productivity services, Ceridian helps organizations maximize their human, financial and technology resources. As a leader in payroll outsourcing, gift cards and controlled spending, Ceridian is also a driving force in payment innovation. Whether partnering to improve employee productivity, save money or minimize financial risks, Ceridian's business is to help organizations stay focused on their business. For more information about Ceridian's comprehensive array of human resource solutions, visit http://www.ceridian.com or call 800-729-7655.
This press release was distributed through PR Web by Human Resources Marketer (HR Marketer: http://www.HRmarketer.com) on behalf of the company listed above.