One Client Fund is Saving an Estimated $1.3 Million Per Year Through Zenith’s Dependent Audit Verification Process
Zenith American Solutions acknowledges the outstanding work performed by our Mendota Heights Client Services team, led by Client Services Executive, Michele Schanke.
By utilizing the Dependent Eligibility Verification Audit (DEVA) process, the team was able to find significant savings for our client Funds. In one case, the Mendota Heights team found an estimated Fund savings of $1.3 million per year. In another, they found an estimated Fund savings of $887,000 per year.
So how does the Dependent Audit work? Zenith American Solutions allows Funds to audit their entire dependent population or limit the scope based on the Fund’s specific criteria. We then collect and review required identification forms for each dependent in the target population to ensure eligibility as defined by the Plan. Zenith American Solutions will coordinate through Fund representatives, Union representatives and legal counsel to determine the appropriate eligibility status for dependents that do not meet the Plan’s eligibility criteria. Upon completion, our clients have seen an immediate, measurable ROI upwards of 20:1.
Fund A:
Dependent Eligibility Verification Audit Performed by Zenith American Solutions Mendota Heights team (September 1, 2020 – November 30, 2020):
+ 679 members with 1,308 dependents were audited
91% response rate from members
86% audit completion rate
– Members voluntarily termed 25 dependents from the Plan
– 179 dependents were removed due to no response or incomplete audit
204 (16%) of dependents were removed from the Plan
= $1.3 million dollars per year (estimated Fund savings for removing 204 Dependents)
Notably, the vast majority of ineligible dependents are not resulting from fraud, but general misunderstanding or lack of communication by employees.
Interested in having a Dependent Audit performed on your Fund? Contact your Client Services Executive for details!
