Remove Ineligible Dependents from Benefit Plans

Key Points

  • Employee benefit plans must be operated for the exclusive use of eligible plan participants.
  • Keeping ineligible dependents on benefit plans can add to an employer's costs.
  • An employer should consider conducting a dependent eligibility verification audit to reduce costs, to ensure that only eligible dependents are enrolled in the health plan and to establish an appropriate system of checks and balances.

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