dependent eligibility audits

Dependent Eligibility AuditsTo Grow Your Business

How To Use

AFLAC

The Big IDEA ● Internet Dependent Eligibility Audits

What’s Important to Brokers?What’s Important to Brokers?

ADD INCREASE GROW

ClientValue

CommissionIncome

MarketShare

Dependent Eligibility AuditsDependent Eligibility Audits

We find and remove ineligible dependents

Benefits to EmployerBenefits to Employer

HealthcareCosts

Plan FiduciaryResponsibility

Claim Risks(stop loss)

REDUCE DECREASEMAINTAIN

Employer TrendsEmployer Trends

70%Percent of large firms over 2,000 employees conducting audits

Average annual cost to provide dependent coverage

Percent of dependents found by audits to be ineligible

$3,000 4%-8%

Results From Hospital AuditResults From Hospital Audit

Dependents

2,400Dependents Removed

7.8%1st Year Savings

$393,498

Results From Manufacturer AuditResults From Manufacturer Audit

Dependents

4,500Dependents Removed

6%1st Year Savings

$750,000

Results From School AuditResults From School Audit

Dependents

700Dependents Removed

6.8%1st Year Savings

$300,000

Employee Interviews

Significant Income Growth OpportunitySignificant Income Growth Opportunity

Broker Income

Mandatory Audit Process

Employee InterviewsEmployee Interviews

The Counselor Process

• Meet Individually with Employees• Complete Web-Based Affidavit• Explain Document Requirements• Offer Aflac Voluntary Products

Project Stakeholder Roles and ContributionsProject Stakeholder Roles and Contributions

ImpactThe Big

IDEA

• SPD Review• Customized Website• Counselor Training• Document Adjudication• Post-Audit Reporting• Communications Templates• Employee Call Center

Dependent Eligibility Audit

Aflac Product Offering

Broker

• Sell the Account• Select Counselors• Choose Products• Provide Project Timetable• Schedule Employee Appts• Manage the Project• Enjoy the Results

PLUS

Benefits of the Big Benefits of the Big IDEAIDEA

Benefits You Receive for your business

Benefits You Provide for your clients

• Face-to-Face Opportunity• Sell More Product• Differentiation from Others• Viewed as Problem-Solver• Open Additional Doors• Close More Accounts

• Remove Ineligibles• Update Dependent Records• Gather Additional Data*• Reduce Healthcare Costs• Reduce Claim Risks• Meet Fiduciary Responsibilities

* For better HR decision-making (spousal carve-outs, SSN reporting, etc)

Typical ROI on AuditsTypical ROI on Audits

Percent Removed 3% 5% 8%1st Year Savings $90,000 $150,000 $240,000

Savings Over 3 Years $219,600 $371,000 $585,600

Communications Cost* $1,500 $1,500 $1,500

Return on Investment 60 Times 100 Times 160 Times

• 1,000 Employees• 500 with Covered Dependents

* Letters to employee homes

• 1,000 Dependents• $3,000 Average Annual Healthcare Costs

Client Profile