Susie Licht July 15, 2011

One of the many things to consider when preparing to perform a dependent audit is who should participate. Some categories are easily determined, such as actively employed participants, while others require a bit more thought, such as surviving dependents or those on COBRA coverage.

Another factor to consider in determining the inclusion of these groups can be the ability to obtain data (such as dependents name(s), mailing address, etc.) for them. Many employers use a third party to administer COBRA coverage and can have limited access to files for this group. Surviving dependents are often updated in data for ease of handling to reflect the spouse as the primary participant of the plan making it a little more difficult to differentiate this group from others.

Careful consideration of the challenges inherent with these groups is necessary during the planning of the audit in order to avoid issues from arising during the process. In many cases, the administrative burden or financial costs involved can make including these groups in an audit not worth the extra effort.

Learn more about different types of dependent audit participants as well as our experiences within each group at: www.dependentcheck.com/audit-guide/audit-participants.