Secova audit saves New Hampshire town $177,000

City and state departments can save a lot of money by completing healthcare eligibility verifications.

Companies looking to save money on their employer-provided healthcare should use Manchester, New Hampshire as a strong example of how to accomplish that goal. The New England city recently received the results of an audit, which examined dependent benefits eligibility for the municipal department. The aim of the examination was to discover how many people were considered unqualified for town health or dental insurance programs – either because they had partial or full documentation missing or were simply not eligible for coverage. As the New Hampshire Union Leader mentioned, Manchester received some astounding results with help from Secova.

The specifics
At the time of the audit, 2,161 employees were enrolled in city-provided health and dental insurance. After learning that New Hampshire had completed a similar verification process for all state employees signed up for insurance, Manchester mayor Ted Gatsas requested the same procedure for his town.

Gatsas followed the state's lead and brought on a third party, Secova, to conduct the audit. The final report was sent to a committee on Manchester personnel – including Human Resources director Jane Gile, city benefits coordinator Sue Figg and Independent City Auditor Kevin Buckley – in September 2016. The team reviewed the findings, which found 38 ineligible dependents, 94 dependents with no documentation and 13 incomplete submissions.

"With help from Secova, Manchester was able to complete 90 out of 94 verifications."

The aftermath
The revisionary board closely examined the results of Secova's audit, checking for factors that could have impacted the final results, including duplicate entries. Together, they were able to rectify many of the issues discovered during the examination of municipal ineligible dependents.

Missing documentation for the incomplete files was found and submitted, and paperwork was provided for 90 of the 94 people marked as having no documentation whatsoever. As a result, only 34 dependents – seven spouses and 27 children – were deemed true ineligibles. The city revealed that many of these ineligible dependents voluntarily dropped their coverage when they were approached about their insurance.

The cost savings
Although Manchester paid Secova around $21,300 to complete the audit, the examination saved the city much more than that. In fact, the review of ineligible dependents utilizing municipal health and dental insurance retained $177,432. That may have been an unexpected figure for the New England town, but it was welcomed nonetheless.

Manchester's audit could be an example for other states and cities to conduct the same procedure. Although the comprehensive process may take some time to gather thorough results, a dependent eligibility verification examination will also help jurisdictions spare funds that could be used elsewhere.

Secova, especially after its strong performance in the largest city in New Hampshire, is the perfect partner to complete this process for organizations of various sizes. An experienced, dedicated and knowledgeable team will take on the task, never resting until the job is done. 


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