General Motors To Audit Health Coverage Eligibility Of Hourly Workers' Dependents

Main Category: Health Insurance / Medical Insurance
Article Date: 14 Aug 2008 - 9:00 PDT

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General Motors recently announced it will conduct an audit to determine whether hourly workers' dependents enrolled in the automaker's health plans are eligible for coverage, the Detroit Free Press reports. GM is attempting to reduce the $4.6 billion it spends annually on health care by removing ineligible dependents (Detroit Free Press, 8/13).

This is not the first health benefits audit GM has conducted, according to the Wall Street Journal. However, a GM spokesperson said this audit will be more extensive than previous efforts. GM notified its 67,000 hourly workers that they have until Aug. 20 to voluntarily remove dependents who are ineligible from their health plans. The automaker last year spent $1.3 billion on health care for hourly workers and their dependents. Workers who are found to have received health benefits for ineligible dependents might be required to reimburse the company, the spokesperson said.

According to HRAdvance, removing ineligible dependents can save an employer between 2% and 5%. GM estimates that 5% to 10% of dependents enrolled in its health plans are ineligible. Paul Fronstin, director of health research and educational programs for the Employee Benefit Research Institute, said that health benefits audits are becoming more common as employers seek to reduce growing health care spending (Terlep, Wall Street Journal, 8/13).

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