Quite a bit of paperwork is required to secure coverage for employees, which is why employers spend so much money and so many resources on acquiring the best benefits for their staffs. However, it is easy for all of the red tape and bureaucracy involved in this process to allow money to slip through the cracks.
One way in which this can occur is when people are covered by plans for which they aren't eligible. For instance – divorced spouses, unemployed workers and part-time staff can all manage to be on the roster of covered employees when they aren't meant to be there. That's why companies need to perform regular eligibility audits.
According to researcher BLR, only two out of five businesses perform regular audits of this kind. It is estimated that such a procedure can save a company up to $4,700 a year or more for every person discovered to still be listed as eligible when they actually aren't. Employee benefit specialists can help to manage and direct these audits so that companies can restrict their compensation to only the employees who work for them and eligible family members.
