Dependent Eligibility Audit UpdateDear Colleagues,
Today we will publicly announce the results of the dependent eligibility audit that was conducted earlier this year. I wanted to share this information with you first and also extend my sincere thanks for your participation in this process, which will help us continue to provide you with an affordable, competitive healthcare plan. Our primary objective when we began the audit was to ensure that only those who qualify for this valuable benefit are part of the plan and thus, to save you and the University money in our fastest-growing cost category, healthcare. I am very pleased to tell you that we’ve met those objectives, thanks in large part to your efforts.
The audit confirmed that the vast majority of our employees are abiding by our eligibility requirements. Of nearly 16,000 dependents audited, only 421 – or 2.7 percent – were found to be ineligible to receive insurance benefits. Many of these individuals were voluntarily removed from coverage by the employee. A significant portion were older children of employees (defined as persons 19-26 years of age), and we suspect this may have been partially due to confusion created by changes in federal healthcare law. We certainly understand that honest mistakes happen. All 421 ineligible dependents have now been removed from our medical and/or dental plans, which will result in an estimated cost avoidance of more than $1 million per year – an 883 percent initial return on our investment in this process. Most important, we are now able to assure our plan members that all those in our health care pool are in fact eligible to be there. As a self-insured employer, we felt we owed it to you to make sure we’re doing everything we can to keep your healthcare premiums competitive.
You should be especially proud of the level of participation and cooperation that you achieved in the audit. The University’s response rate of 99.5 percent is higher than that at many other universities and businesses that have conducted similar audits. I know this audit required time and effort on your part, and I commend you for your willingness to participate for the greater benefit of all those who are covered by the University’s healthcare plans.
Cost-effectiveness is one of the University’s highest priorities. Dollars not spent on healthcare are dollars available to the campuses for salaries and other priorities. Your participation in our review of dependents’ eligibility has helped us to advance this goal and become a more efficient University. Thank you for your assistance, and thank you for all that you do for the University of Nebraska.
Vice President for Business and Finance