1. State of Minnesota Dependent Audit
Estimated Savings
State of Minnesota Dependent Audit
Savings Estimates for Document Model Review
Year
# Dependents Audited
# Ineligibles Removed
Med & Rx Savings per Ineligible Removed
Total Med & Rx Savings
Audit
70,000
Year 1
4,900
$2,720
$ 13,328,000
Year 2
$2,918
$ 14,298,200
Year 3
$3,131
$ 15,341,900
Year 4
$3,358
$ 16,454,200
Year 5
$3,603
$ 17,654,700
Total
$ 77,077,000
The savings estimates are based on 50,000 employee households with one or more dependents, and a total of 70,000 dependents. The average dependent spend is conservatively estimated at $3,400 annually. Estimate assumes a 7% reduction in dependent headcounts. 7