ROI*
|
POTENTIAL SAVINGS FROM DEPENDENT ELIGIBILITY AUDIT
|
|
Total Number of Company Employees
|
Subscribers with Dependents
|
Estimated Dependents
|
Lower Annual Savings 5% Disenrollment
|
Upper Annual Savings
15% Disenrollment
|
Average
5-Year Savings
|
1st Year ROI
|
|
100
|
40
|
64
|
$7,000
|
$23,000
|
$77,000
|
303%
|
|
200
|
80
|
128
|
$15,000
|
$46,000
|
$154,000
|
424%
|
|
300
|
120
|
192
|
$23,000
|
$69,000
|
$230,000
|
489%
|
|
400
|
160
|
256
|
$31,000
|
$92,000
|
$307,000
|
530%
|
|
500
|
200
|
320
|
$38,000
|
$115,000
|
$384,000
|
558%
|
|
650
|
260
|
416
|
$50,000
|
$150,000
|
$499,000
|
586%
|
|
850
|
340
|
544
|
$65,000
|
$196,000
|
$653,000
|
610%
|
|
1000
|
400
|
640
|
$77,000
|
$230,000
|
$768,000
|
623%
|
|
1500
|
600
|
960
|
$115,000
|
$346,000
|
$1,152,000
|
648%
|
|
2000
|
800
|
1280
|
$154,000
|
$461,000
|
$1,536,000
|
662%
|
|
|
* the figures above are offered for illustration only, there is no guarantee of any particular level of ROI or savings
ROI Assumptions:
· 80% of employees are enrolled in Medical Plan,
· Enrolled Employees - Distribution:
o Singles (50%),
o Employee + One(30%),
o Families (20%),
· Singles not audited In-house labor hours required for full audit is based on 2-hours per dependent,
· ROI is Return on Investment (example: 500% ROI is interpreted as the company gets back $5.00 for every one spent on the audit in the first year.
· General Employer Group Heath Benefit Coverage Average:
o 80% member participation
o 2.5 dependents per family
o 18% E+C/S &
o 25% Family
· Company hourly rates Burdened $35/$20/hr for audit personnel - assumes 100% audit of dependents (2hours per employee)