Enrollment season gives employers an opportunity to confirm that every dependent covered by their health plan meets the plan’s eligibility requirements. A Dependent Verification Review (DVR) can help improve enrollment accuracy, manage avoidable costs, support plan compliance, and reduce administrative work.
Managing Benefits Costs
Benefits already represent a significant employer expense. According to the U.S. Department of Labor, private industry employers spend nearly 30% of total employee compensation costs on benefits.1 Over the last five years, the average premium for family coverage has increased by 26%.2 Verifying that only eligible dependents are on the health plan may lead to savings by reducing potentially ineligible claims. Although actual costs vary depending on the employer and the plan, even a small number of ineligible dependents may have a meaningful financial impact.
Private industry employers spend nearly 30% of total employee compensation costs on benefits.1
Conducting a DVR during enrollment helps employers compare dependent information with the eligibility rules in their plan documents before coverage begins or continues. It may also make the review more efficient by combining employee communication, document collection, and follow-up with an existing enrollment process.
Supporting Plan Compliance
A DVR can help employers administer coverage according to the eligibility terms in their plan documents. Identifying discrepancies early gives them more time to review each situation and coordinate an appropriate response with employees and their benefits partners.
Benefits of a DVR for Employers
A well-planned DVR can give employers a clearer picture of who is covered and help them manage the plan more consistently. Potential benefits include:
Identifying and working with carriers to remove dependents who do not meet the plan’s eligibility requirements
Helping reduce avoidable plan costs associated with ineligible dependents
Supporting consistent administration of carrier and plan eligibility rules
Improving dependent data used for enrollment, plan reporting, and future coverage decisions
Giving benefits teams an established process for communicating requirements and documenting results
Education Opportunity for Employees
Employees benefit from clear eligibility guidance, too. A DVR can help them understand who qualifies for coverage, avoid paying premiums for an ineligible dependent, and address coverage questions before potential issues arise. When a dependent is no longer eligible, early notice may also give the employee more time to explore other coverage options.
What to Expect
Before enrollment: Let employees know a DVR will be conducted and explain the eligibility guidelines, required documentation, timeline, and frequently asked questions. When American Fidelity supports the review, we provide communication materials to help employees prepare.
During enrollment: Our salaried account managers conduct one-on-one benefit reviews with eligible employees, visually verify eligibility documents, and obtain a signed Dependent Eligibility Form from each benefit-eligible employee.
After enrollment: American Fidelity provides the employer with reports showing the review status of each benefit-eligible employee. The employer then works with its carrier, administrator, and legal counsel, as appropriate, to review discrepancies, make eligibility decisions, and determine next steps.
Adding a DVR to enrollment can help employers confirm eligibility, better manage plan costs, and create a clearer experience for employees. With a guided process, employers can complete the review while helping reduce the administrative work placed on their benefits team.
Learn More About Dependent Verification Reviews
This blog is up to date as of October 2026 and has not been updated for changes in the law, administration, or current events. American Fidelity does not provide financial, legal, or tax advice. Consult an attorney or a tax professional regarding your specific situation.
