As we advised you in March, ERS has contracted with Aon Hewitt to conduct an ongoing dependent verification audit of all health plan participants. More than a year of planning went into the execution of the audit, and we have been communicating with our members about this effort through various communication channels since June 2010.

Over the years, many participants and stakeholders have recommended that ERS conduct a dependent audit. During our 2010 member survey, it was one of the most common suggestions.

The primary goal of the audit is to save members and the health plan money by removing ineligible dependents from the Plan. As of May 16, 2011, 1,630 dependents have been dropped voluntarily from health insurance. This translates to $3.4 million in actual claim cost reductions. We expect to save the State $15 to $20 million when the audit is completed.

We continually address issues as they arise. Recent events have increased everyone’s level of concern for document security, and we understand that some participants may be reluctant to send copies of personal records. In response, we have advised employees and retirees that they can bring their documents to the ERS building as an additional option.

If you are aware of any additional security issues that may result from the audit, please let us know so that we can review our procedures and adjust them if necessary.

We appreciate your support.

Sincerely,

Ann S. Fuelberg

Executive Director

For more information, you may visit ERS online.