Is That Your Family? Next Year, Your Boss May Ask You to Prove It

What's Hot


The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

How a Mexican Tariff Will Boost the Cost of 6 Common PurchasesFamily

This Free Software Brings Old Laptops Back to LifeMore

How to Protect Yourself From the ‘Can You Hear Me?’ Phone ScamFamily

Report: Walmart to Begin Selling CarsCars

Where to Sell Your Stuff for Top DollarAround The House

Is Your TV Tracking You? Here’s How to Tell — and Prevent ItAround The House

11 Staging Tips to Help You Get Top Dollar When Selling Your HomeAround The House

21 Restaurants Offering Free Food Right NowSaving Money

20 Simple Hacks to Make Your Stuff Last LongerAround The House

4 Car Insurers That Might Raise Rates Even When the Accident Wasn’t Your FaultCars

How to Invest If Trump Kills the ‘Fiduciary Rule’Grow

12 Surprising Ways to Wreck Your Credit ScoreBorrow

9 Secret Ways to Use Toothpaste That Will Make You SmileAround The House

The 2 Types of Music That Most Improve Dog BehaviorFamily

With healthcare costs set to rise next year, your employer will still cover you – but you'll have to prove your family is really your own.

Newspaper reporters have an expression: “If your mother says she loves you, check it out.”

Next year, employers who offer health insurance will have a new expression of their own: “If your mother says she’s your mother, we’re gonna check her out.”

That’s because the new healthcare legislation that President Obama pushed through Congress sets some important deadlines for 2011. A big one is this: Employers must offer coverage for their workers’ dependents until they’re 26 years old.

Right now, those laws vary by state and usually top out at 23. So adding a few years will seriously hike costs, says a new report from Price Waterhouse Coopers.

The report, titled “Behind the Numbers,” predicts employers will pay 9 percent more next year on healthcare coverage – which is actually an ever-so-slight drop of a half-percent in the rate of increase from 2010.

But to keep costs down, expect to provide documentation of your dependents – or be denied coverage. So don’t lie about your children’s ages or insist your daughter-in-law is your daughter.

Documentation you could potentially be asked to produce: birth certificates, marriage licenses, domestic partner affidavits, legal guardianship papers – potentially even proof of immigrations status.

Auditing the eligible employees of employer-sponsored health plans is a growing business, with companies like ConSova doing the work of verifying dependents.

“Executives are asking whether or not the company is really doing everything it can to cut plan expenses,” ConSova CEO Michael Smith said. “Most are probably aware that they’re covering a number of ineligibles, but they may not realize just how much this unnecessary coverage costs. With near double-digit cost increases on the horizon, there’s never been a better time to reduce the burden of ineligible dependents.”

ConSova says ineligible dependents eat up as much as 6 percent of self-funded insurers’ total annual health plan expenses, costing both small and large companies millions of dollars.

So if you have dependents, keep their paperwork handy – because you might just need it for your next open enrollment.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: House Hunters: Beware of These 6 Mortgage Mistakes

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,788 more deals!