More Plans Auditing Dependent Coverage

While some Americans have been able to sneak ineligible dependents on to their insurance coverage, this may come to an end as more health plans are conducting dependent audits to ensure that all covered individuals are truly eligible.

According to the Washington Post, plans conducting audits typically allow an "amnesty" period, during which members can drop ineligible dependents without penalty. Then the auditing process begins, where plans may require proof of dependent status in order to keep individuals on the plan. Those with insufficient documentation may be dropped from coverage.

Plans usually notify members of an audit in writing, but this notification may be hidden in fine print, so read your open enrollment documentation carefully. Also, read carefully to find out your plan's eligibility requirements for dependent coverage. If you are getting your plan through work, your Human Resources department may be able to help you. Since plan rules vary, some people are caught by surprise to find out that their college-age child is not eligible for coverage under their plan, and must scramble to find alternative insurance.