Dependent Verification ROI Calculator

See exactly how much your organization can save by identifying and removing ineligible dependents from your benefits plan. Build the business case with real numbers.

Enter Your Plan Details

Adjust the inputs below to see your estimated savings and return on investment.

50 2,500 5,000 7,500 10,000
1% 5% 10% 15% 20%

Industry studies show 5-15% of dependents are typically ineligible

$3,000 $6,000 $9,000 $12,000

National average is $5,000-$8,000 per covered life

Estimated First-Year Net Savings
$227,500
after audit costs
19:1
Return on
Investment
Estimated ineligible dependents 40
Annual cost of ineligible dependents $240,000
Audit cost ($25/dependent) $12,500
First-year net savings $227,500
Projected 5-year savings $1,187,500
Audit Cost vs. Annual Savings
Audit Cost
$12,500
Annual Savings
$240,000
Methodology

How We Calculate Your ROI

This calculator uses industry-standard assumptions and your specific plan data to estimate the financial impact of a dependent eligibility audit. Here is how each figure is derived.

Ineligibility rate (5-15%): Multiple industry studies, including reports from the Dependent Verification Industry Association, consistently find that 5-15% of dependents on employer health plans are ineligible. Common reasons include divorce or legal separation where an ex-spouse remains on the plan, children who have aged out of coverage, and domestic partnerships that have ended.

Average healthcare cost per dependent ($5,000-$8,000): This range reflects the average annual employer cost per covered life based on national benefits surveys. Your actual cost depends on your plan design, geographic region, and employee demographics. If you have access to your per-member-per-year (PMPY) cost, use that figure for a more precise estimate.

Audit pricing: The per-dependent rates used in this calculator reflect DependentVerify's volume-based pricing tiers: $25 per dependent for audits under 1,000 dependents, $20 for 1,000-1,999, $15 for 2,000-4,999, and $12 for 5,000 or more.

Note: These results are estimates intended to help you build a preliminary business case. Actual savings depend on your specific plan costs, dependent population mix, response rates, and other factors unique to your organization. We recommend discussing your specific situation with a benefits consultant for a detailed projection.

Long-Term Impact

What Happens to Your Savings Over Time

A single dependent audit creates a savings ripple effect that compounds over multiple years.

Year 1: Full Savings Minus Audit Cost

Ineligible dependents are identified and removed from the plan. You realize the full annual savings from those removed dependents, minus the one-time cost of the audit itself. Most employers see a net positive return in the first year alone.

Years 2-3: Continued Savings, No Additional Audit Cost

The dependents removed in Year 1 remain off the plan, so your savings continue at the full annual rate with no additional audit expense. These are essentially free savings that flow directly to your bottom line.

Years 3-4: Re-Verification Recommended

Over time, new ineligible dependents accumulate as life events occur: divorces, children aging out, unreported changes. Running a follow-up audit every two to three years catches these new ineligible dependents before costs escalate. Follow-up audits often have a similar or even higher ROI because the process is already familiar to employees.

5-Year Cumulative Impact: 5-10x the Initial Audit Cost

When you factor in the continued savings from Year 1 removals plus additional savings from subsequent audits, the compound effect over five years can reach 5 to 10 times the initial audit investment. Organizations that make dependent verification a regular part of their benefits management consistently report the strongest long-term cost control.

Common Questions

Frequently Asked Questions

Employers typically save between $2,000 and $8,000 per ineligible dependent removed from their benefits plan, depending on average healthcare costs in their region and plan design. With industry data showing that 5-15% of dependents are typically ineligible, an employer with 1,000 dependents could save $300,000 to $900,000 annually. The exact amount depends on your specific healthcare costs per covered life, your dependent population's ineligibility rate, and your plan design.
The typical return on investment for a dependent verification audit ranges from 10:1 to 30:1 in the first year. This means for every dollar spent on the audit, employers save $10 to $30 in healthcare costs by removing ineligible dependents. Over a five-year period with periodic re-verification, cumulative ROI can reach 50:1 or higher. The ROI depends on your plan size, ineligibility rate, and the per-dependent cost of your healthcare benefits.
Multiple industry studies consistently find that 5-15% of dependents on employer health plans are ineligible for coverage. The most common reasons include ex-spouses remaining on the plan after divorce or legal separation, children who have aged out of eligible coverage, domestic partnerships that have ended, and dependents who have obtained coverage through their own employer. Organizations that have never conducted an audit tend to be at the higher end of this range.
Most benefits consultants recommend running a dependent eligibility audit every two to three years. After an initial audit removes ineligible dependents, new ineligible dependents accumulate over time due to life events such as divorce, children aging out, and unreported changes. Running periodic audits ensures your plan stays clean and your cost savings continue. Some larger employers with high turnover or complex benefits structures choose to audit annually for maximum cost control.

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No contracts. Transparent per-dependent pricing.