Memo from Pat Pitney regarding dependent audit

February 9, 2011

University Relations

Last week, many of you received information on the upcoming dependent audit being conducted on the university's behalf by ConSova. This audit is one of several steps being taken to moderate the rapidly rising cost of health care at the university – currently $15,000 per employee each year, and expected to double in the next seven years.

While it may seem unnecessary for those of you who have worked at the university for many years to collect and forward information on the dependents on your health plan, we expect this audit will save the university between $500,000 and $1,000,000 per year by removing ex-spouses and overage dependents.

We understand the concerns you may have about releasing this information to a third party. Precautions have been taken to ensure your information is kept confidential. For more information, please refer to the frequently asked questions included below.

You should have also received a letter from President Gamble referencing upcoming changes to our health care plan. If you did not receive the letter by e-mail, you will receive a copy at your home address soon. It's also posted on the UA Benefits website. More specific communications on the changes will be forthcoming from Statewide Benefits.

While we would all like to leave the health plan unchanged, the university cannot absorb all the cost of rising health care costs, nor can we pass all of the costs on to our employees. These upcoming changes ensure that we can provide a viable and sustainable health care plan to all employees for years to come.
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Q. Who is ConSova?
A. ConSova is a Human Resources firm that specializes in the dependent eligibility verification process and has conducted many dependent audits for Fortune 500 companies and governmental organizations.

Q. Should I black out my financial information and Social Security number on these documents?
A. You should not share any financial information on the IRS 1040 form requested (nothing below line 6). You also should black out all SSNs of your dependents and keep only the last four digits of your SSN on the form. The last four digits of your SSN is required for accurate data match.

Q. What guarantee do we have that our personal documents will be kept secure?
A. ConSova considers security and confidentiality a very serious matter. They employ state-of-the-art encryption technology to safeguard sensitive data.  All documentation received is scanned and maintained on encrypted drives. In the event a ConSova system is stolen, the data is encrypted and will not be accessible to anyone. The server that maintains Dependent Eligibility Verification systems and scanned images is only accessible on ConSova’s Local Area Network located in Lakewood, Colorado. This Local Area Network is a closed system and not accessible via Virtual Private Network or any other interactive connection. ConSova Associates have audited over 1.5 million dependents in the past seven years, and they have never been accused or alleged to have not protected the private personal information of its clients’ employees.

University of Alaska realizes and understands that employees may have concerns about releasing this information to a third party.  We assure you that every precaution has been taken to ensure your information is kept confidential. This is no different than what our other service providers must prove (Premera, Caremark, VSP).  You can help protect your own privacy by following the instructions included with the letter you will receive from ConSova.

Q. Will the submitted documents be retained by ConSova? If so, for how long?
A. Documentation received from University of Alaska employees will be batched and maintained in a secure location monitored only by ConSova employees. ConSova will destroy all documentation and wipe all hard drives containing protected information 30 days after the dependent verification is completed.

Q. Can my local Human Resources Department review my documents to determine eligibility of my dependents instead of ConSova?
A. No. The University of Alaska will not review any documentation for the verification process. All documents must be provided to ConSova for review.

Q. If I am unable to supply documentation by the deadline for my eligible dependent, will University of Alaska terminate my dependent from the plan?
A. The University of Alaska will terminate a dependent due to the inability to provide documentation that verifies eligibility. However, if you are in contact with ConSova during the verification process and ConSova is aware of an issue you may be experiencing in gathering the appropriate documents, then your dependent will not be automatically terminated if you do not meet the deadline. ConSova is willing to assist you through this process, including helping you contact agencies to locate the documents you need.

Q. Where should I go if I have questions?
A. The general information documents that have been sent out will be posted online at http://www.consova.com/universityofalaska. It may help you to review them. If after reviewing you still don't find the answer to your question, call 1-866-430-1267.