April 6, 2009

Eligibility verification package required to insure dependents

Faculty and staff who cover dependents on their Purdue insurance need to pay special attention to a Dependent Eligibility Verification Package that they will receive at home in April. Coverage on dependents will be dropped if the required information and verification documents are not received by May 13.

As a health plan sponsor, Purdue is required to provide certain information to the Centers for Medicare and Medicaid Services (CMS). This information is designed to help CMS determine when Medicare-covered individuals have group health coverage that should pay the primary benefit, with Medicare or Medicaid paying as secondary coverage. The information required by CMS includes the Social Security Numbers (SSN) of all dependents enrolled in Purdue medical plans.

Because Purdue does not currently have dependent Social Security Numbers on file, all faculty and staff will need to provide this information over the next several weeks.

In addition to gathering this legally required information, this also provides Purdue with the opportunity to determine whether dependents enrolled in the University's medical plans are actually eligible for coverage.

"During these difficult economic times, it's critical that Purdue continue its legacy of strong fiscal management," says John Beelke, director of Human Resource Services. "This includes negotiating cost-effective benefit plans, managing provider performance, and ensuring the integrity of our eligibility data. Ineligible dependents enrolled in our medical plans increases cost — both for participants and the University."

That's why Purdue has partnered with Mercer, a human resource consulting firm, to collect and analyze dependent data and verify eligibility.

All employees with dependents covered under the Purdue medical plans will receive a Dependent Eligibility Verification Package. This is the employee's opportunity to provide dependent Social Security Numbers and documentation verifying their eligibility to participate in the Purdue plans (for example, first page of tax return with financial information blacked out, birth certificate(s), marriage license, etc.).

Employees will have until May 13 to return the requested information.

"Keep in mind that throughout this process, the information employees provide will be kept strictly confidential," says Beelke. "The security of personal information is Staff Benefits' highest priority."

Employees will receive information from Mercer to kick off this important process. Employees should read these materials carefully and follow the instructions. By returning the requested eligibility information by the deadline, Purdue can ensure that participant data is accurate and that employees — and Purdue — are not paying the health care expenses of ineligible plan participants.

To visit the CMS Web site that further describes the mandatory data exchange requirements, or to sign up for alerts on this subject, go to www.cms.hhs.gov/MandatoryInsRep.

To review the specific details regarding the new federal mandate: Statutory Language Sec. 111, P.L. 110-173, visit www.cms.hhs.gov/EmployerServices/03_employervdsa.asp.

Steps to take

1. Review the information you receive from Mercer in early April.

2. Return the requested information outlined in your Dependent Eligibility Verification Package by the May 13 deadline.

3. Contact the Purdue Dependent Eligibility Verification Service Center if you have questions. Contact information for the center will be available in the Dependent Eligibility Verification Package.