Controller's Report

As a rule of thumb, companies save from $2,000 to $5,000 every time they cull an ineligible dependent from their health plan. Key point: In removing ineligible dependents, employers usually follow a two-step procedure. First, they ask employees to report covered dependents who are ineligible for health benefits because they have "aged out," have dropped out of college, or are ex-spouses. Following enrollment adjustments during this so-called amnesty period, companies ask for documentation—tax returns or school transcripts—from employees proving dependent eligibility.