The University of Missouri recently discovered that they will be able to save a number of million dollars each year if they were to take steps in verifying the dependents of the system’s employees and make sure they are eligible to be included.
The steps to verify are being done in order to ensure that the information regarding the dependents that are listed on the health insurance of the employees is updated and recent. Employees were required to present some necessary documents including the birth certificate, marriage certificate, federal tax returns of the dependents. There are rare cases wherein court documents are asked.
According to the preliminary report that was submitted by the department of Human Resources of the University of Missouri to the Intercampus Faculty Council, the implementation of the audit will be able to save the University of Missouri system around $3.736 million. This information was shared by the chairman of the University of Missouri faculty council, Ben Trachtenberg.
Trachtenberg also added that every year they are also conducting a small percentage of spot checking to ensure that the records they have are updated. What they don’t realize is that it is the SOP that a 100 per cent audit should be conducted once every few years.
According to the University of Missouri News Bureau’s director, Christian Basi, there are a number of instances when the dependents’ status under the health insurance of an employee could change such as change of custody, divorce, and a child that is no longer qualified since he or she has reached the maximum age to be covered by the insurance of the parent who is an employee.
Basi added that the savings indicated on the report is only an approximate since it will be hard for them to calculate the exact amount based on various reasons. There are those that may have updated the status of the dependent during the announcement of the audit without waiting for the actual schedule which means that they are not counted in the savings’ total. This is the reason why when doing an audit, an accountant insurance should be acquired to protect the person or system.