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Wednesday, Sep 26
Tribune Half Answers Health Insurance Audit Question
The anxiety follows an audit schemed up by Mercer, a consultant hired by Tribune, which suggested one cost-cutting measure for the company was to rid itself of all the pesky "fake" dependents employees list on their health insurance coverage. The mood is best summed up in a series of e-mails between Sacto reporter Jordan Rau and Irene Sewell, VP/Compensation and Benefits for Tribune, which bear the subject line "Mercer Dependent Audit Ineptitude." Jordan: Luis forwarded me your note. The company decided to conduct a full audit of dependent status based on the results of our initial sample audit. That audit revealed that there were hundreds of dependents being carried on Tribune's medical plans who were in fact not eligible for coverage. This translates into approximately $2,000 a year on average for each ineligible dependent carried on our plans. These medical costs are shared with our employees so it is an expense to both Tribune and to our employees. It is not only a financial concern but one of fairness as well. Nonetheless, removing these ineligible dependents from our plans more than recouped the cost of the audit itself. And his response: Dear Irene, Email This Post |
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