HR Committee Dependent Eligibility and Open Enrollment Review HR Committee – Board of Trustees Meeting January 8 th 2020 Sheila Walker – Director Total Rewards
Dependent Eligibility Verification Audit Update HMS completed a comprehensive Dependent Eligibility Verification Audit on September 27, 2019. The objective was to ensure that all enrolled dependents meet the eligibility definition by requiring employees to provide documentation to verify eligibility.
Audit Communication Timeline Date Communicator Audience What How 23-Apr-19 AHS Unions DEV Announcement HBCCC Meeting 17-Jun-19 AHS Employees DEV Announcement Email and AHS Intranet 23-Jul-19 AHS Unions DEV Timeline HBCCC Meeting Intial DEV Notice - with 9/6 deadline and full details on 26-Jul-19 HMS Employees acceptable documents and submission information Mail 31-Jul-19 AHS CHRO Employees DEV Reminder Email 2-Aug-19 AHS HRBP's and Labor Weekly DEV Status Reports Began Email 7-Aug-19 Labor Unions Weekly DEV Status Reports Began Email 12-Aug-19 HRBP's Managers/Supervisors Weekly DEV Status Reports Began Email 4-Aug-19 AHS Employees DEV Reminder AHS Intranet/ TR Page 5-Aug-19 AHS Employees DEV Reminder Posters 21-Aug-19 HMS Employees Verification Reminder Mail & Email 27-Aug-19 AHS Unions DEV Update HBCCC Meeting 6-Sep-19 HMS Employees Verification Reminder Mail & Email 11-Sep-19 HMS Employees Final Notice Letter - with Audit extension to 9/23 Mail & Email 16-Sep-19 HMS Employees DEV Reminder Telephone Calls Insurance Termination Notice & Insurance Alternative 1-Oct-19 HMS Employees Document Mail & Email
Dependent Status Results 0.04% 9.70% 0.30% A total of 2377 employees with 5200 dependents enrolled in the AHS medical, dental, and vision plans were audited. 9.67% or 502 of the dependents were recommended for removal because they did not meet the eligibility guidelines, or did not 89.96% provide appropriate Verified Dependents Verified after Close documentation to verify eligibility. Removed Dependents Client Update
Dependent Removal Details Termination by Relationship Spouses/Partners 211 Children 291 Termination Types No Response 264 Insufficient Documentation 183 Voluntary 55 Unspecified - 26 Ineligible - 11 Other Coverage - 6 Divorce - 6 Age - 3 Married - 2 Death - 1 Total 502
Return on Investment Savings – broken down by Return on Investment dependent / by coverage type : $53,341 Annual Medical Savings: $7,200 per Sp/Dp x 211 = $1,519,200 $3,050 per Child x 291 = $887,550 Annual Dental Savings: $432 per Sp/Dp x 236 Sp = $101,952 $2,525,297 $372 per Child x 188 = $69,936 Investment Total Annualized Savings Less Investment Total: $2,578,638 This represents theoretical savings due to cost avoidance of $2,578,638 and a ROI of 4734% for the project. Based on an average tenure of 8.87 years, the total projected total savings is $22,872,519.
Passive Benefits Open Enrollment
What’s Changed ➢ First Passive Open Enrollment - Enrollment required only if making changes or enrolling in one of the FSA plans or the Share the Savings Plan. ➢ Greatly reduced Open Enrollment packets size ➢ Reduced Open Enrollment Road Show ➢ HR Service Center provided responses to basic benefits inquiries ➢ Initiation of ticketing system to track employee inquiries, which allowed for greater insight around the types of benefits inquiries and for monitoring responsiveness to tickets. 8
2019 and 2020 OE Comparison 2019 2020 Change Reduced OE Packet Size - Large Benefits Benefits Communications $ 42,051 $ 11,622 Guide Not Included Reduced Number of OE Meetings, Meeting Duration, Benefits Staff Open Enrollment Roadshow Expenses $ 7,222 $ 995 Attendance and elimination of giveaways $ 49,273 $ 12,617 Savings $ 36,656 2019 2020 Employee Employee Count Count Change Employee's eligible for enrollment 4241 4109 Employee's enrolled 4241 2173 Passive Open Enrollment Total Hours Spent Enrolling (Enrolled Employees x .5 hours) 2,120.5 1,086.5 This figure doesn’t include the time saved by employees reading thru OE packets Productivity Hours Saved 1,034 that were greatly reduced. 9
Lessons Learned ➢ Importance of ticketing system and the need to monitor the tickets on a regular basis to ensure employees receive a response to their inquires within 2 business days. ➢ We experienced some OE errors related to the beneficiary designation links that were attached to the OE module. We will eliminate this going forward so it is a separate and distinct process. ➢ As a new Director of Total Rewards at AHS, I was also able to evaluate the performance of the Total Rewards Team and our Broker/Consultant. I have obtained solid understanding of our strengths and weaknesses and will plan accordingly. 10
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