Employers Scrutinize Eligibility of Dependents on Health Plans

One more reason to read the fine print, and read it again...BD 

Faced with rising medical costs, U.S. employers are starting to scrutinize the eligibility of dependents, such as spouses and children, who are covered under their health plans. Traditionally, employers relied on an honor system to manage enrollment. But now, in an effort to restrain rising health spending, a growing number of employers are requiring employees to provide documented proof.

Workers should be prepared to dig out copies of birth and marriage certificates, root around for tax returns and obtain a letter from their child's college. Employees who fail to provide supporting documents when asked risk losing health coverage for their loved ones and, in rare cases, their jobs -- if they knowingly seek coverage for family members they know to be ineligible. In cases of clear fraud, an employer may also seek to recoup plan-paid medical and prescription costs.

So who qualifies as a dependent? Unfortunately, rules vary by state. Alabama and Texas recognize common-law marriage, whereas New York and California don't. To complicate matters, employers who self-insure benefits write their own rules. The only way to be certain is to read the list of definitions in the plan documents supplied by your employer and call human resources if you have questions.

Employers Scrutinize Eligibility of Dependents on Health Plans - WSJ.com