Dependent audit savings calculator: what do ineligible dependents cost the plan?
Enter the number of covered dependents, your own estimate of how many are ineligible and the monthly cost of each to see the yearly cost and the net savings from an audit. Built for HR and finance teams deciding whether to verify who is on the plan.
Estimate what an audit could save.
The ineligible rate is your assumption. The result updates as you type.
Your own assumption. Ineligible dependents are often former spouses or children who aged out or never qualified.
The plan cost for each dependent, as the employer pays it.
Enter a vendor or staff cost if you have one.
Your estimate
An estimate built on your own assumption. Real results depend on what the audit finds. Savings in later years depend on keeping the roster clean.
Why audit dependents?
A group health plan pays for every person on the roster whether or not that person qualifies. A former spouse, a child who has aged out or a relative who never met the plan’s definition can stay on a plan for years if nobody checks. The cost sits in the plan’s claims and, over time, in the renewal. Verifying the roster removes that cost and gives the employer a clean record.
How does an audit work?
The employer asks each employee to show that each covered dependent is eligible, with a document such as a marriage certificate or a birth certificate. Employees get a window to respond. Dependents who do not qualify come off the plan. Many employers pair the audit with a short amnesty period and a clear explanation so employees do not feel singled out.
Common questions
What percentage should I use?
Use your own estimate. If you have never audited, start low and test a few values. The calculator is more useful as a range than a single figure.
Is this legal?
Plans are allowed to verify eligibility under their terms. The notices and the way dependents are removed matter, so involve your benefits partner and, when needed, counsel.
Does removal trigger COBRA?
It depends on whether the person was ever eligible. Ask your advisor before sending notices.
How often should we audit?
Many employers do a full audit once and then verify at enrollment and at life events. See our dependent eligibility verification page.
Talk to us about dependent verification
Book a 30-minute call and we will look at how to verify your roster and keep it clean. Visit us at 41000 Woodward Avenue, Suite 350 East, Bloomfield Hills, MI 48304, or call 248.370.8853.
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