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Fraud in the Workplace? Evidence from a Dependent Verification Program

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  • Michael Geruso
  • Harvey S. Rosen

Abstract

Many employers have implemented dependent verification (DV) programs, which aim to reduce employee benefits costs by ensuring that ineligible persons are not enrolled in their health plan as dependents. We evaluate a DV program using a panel of health plan enrollment data from a large, single-site employer. We find that dependents were 2.7 percentage points less likely to be reenrolled in the year that DV was introduced, indicating that this fraction of dependents was ineligibly enrolled prior to the program's introduction. We show that these dependents were actually ineligible, rather than merely discouraged from re-enrollment by compliance costs.

Suggested Citation

  • Michael Geruso & Harvey S. Rosen, 2013. "Fraud in the Workplace? Evidence from a Dependent Verification Program," NBER Working Papers 18947, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:18947
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    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private

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