See the Cost. Understand the Risk. Unlock the Savings.
Employers typically pay thousands of dollars per dependent annually. Industry studies show that 4-8% of enrolled dependents are often ineligible. Covering these ineligible dependents wastes premium dollars and can raise overall healthcare costs by several percentage points. A dependent eligibility audit identifies ineligible dependents for removal from coverage, immediately reducing plan spend while ensuring compliance with regulations such as ERISA.
What could you save by conducting a dependent eligibility audit?
Savings Estimate Factors
Your potential savings from a dependent audit are calculated using these key factors:
Total Enrolled Population
The number of covered employees and dependents included in the audit.
Dependents per Employee
The average dependents covered by each employee. Industry data shows approximately 2.4 dependents per employee.
Cost per Dependent
Your annual premium contribution for each dependent. This averages around $3,750 per dependent per year.
Ineligible Rate
The percentage of dependents expected to be ineligible. Case studies commonly show a 4-8% range.
Savings Calculation
Multiply the total at-risk dependents (employees × dependents per employee × ineligible rate) by the cost per dependent.
Example Calculation
Company Profile: 1,000 employees with two dependents each (2,000 total dependents)
Ineligible Rate: 6%
Cost per Dependent: $3,750
Result: 100 ineligible dependents × $3,750 = $451,000 annual savings
Understanding Your Results
Even modest ineligible rates translate into significant savings. Eliminating just 5% of dependents can immediately reduce overall costs by about 5%. These savings can be reinvested into other benefits or used to control future premium increases. The verification results quantify recoverable spend and demonstrate the value of strengthening plan compliance.
Benefits of the Clearify Platform
Multiple Submission Options
Mobile app, web portal, fax, and mail options ensure convenient document upload and high participation rates.
Thorough Audit Process
Trained CleartrackHR auditors review each submission against your plan rules, saving HR teams time while ensuring accuracy.
Compliance Assurance
Systematic eligibility verification helps ensure your plan stays compliant with ERISA and other regulations.
Clear Reporting
An intuitive administrative dashboard tracks verification progress and calculates ROI, providing summary reports that show confirmed/removed dependents, as well as dollar savings.
Dedicated Support
The support team handles employee questions and reminders, reducing the internal staff burden while maintaining positive employee engagement.
Next Steps
Schedule a consultation with the Clearify team to see a personalized savings estimate for your organization. We’ll review your enrollment data and plan rules to run a customized audit simulation, providing a detailed breakdown of your potential cost savings and compliance benefits.
See your potential savings in black and white. Schedule your consultation with CleartrackHR to receive a customized cost analysis of your benefits program.
