Benefits August 17, 2012

Minn. Dependent Audit Drops 3,100 from Coverage

August 17, 2012 (PLANSPONSOR.com) – An audit of Minnesota state employees’ dependents has resulted in 3,100 losing state-provided health insurance.
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Roughly 4% of the 75,000 state employee dependents were found to be ineligible, according to news reports. However, 1,600 dependents lost coverage due to workers not responding to audit requests. Workers had to submit tax returns, birth certificates and marriage licenses.  

AFSCME Council 5, a large union representing state employees, is filing a class-action grievance on behalf of 12 state workers who say their dependents are eligible but lost their insurance due to technicalities, reports the Minneapolis Star-Tribune.  

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Jim Schowalter, state commissioner of Management and Budget, told Minnesota Public Radio News the findings match predictions, and cautioned against suggestions of intentional wrongdoing.   

“We spent $400,000 and saved up to nearly $10 million,” said State Senator Dave Thompson, according to the Associated Press. “I think anybody would say that’s a fantastic return and worth doing.”

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