Concerns over data privacy and the potential for unintended consequences are mounting as the University of Vermont (UVM) continues with an audit of employee health insurance dependents. The audit, initiated in July 2025, requires employees to submit sensitive personal documentation – such as birth certificates and marriage certificates – to Willis Towers Watson, a third-party insurance brokerage firm, to verify eligibility for health benefits.
The move comes as UVM, like many institutions, faces increasing health insurance costs. University officials state they have a “fiduciary duty” to ensure that health plans are used only by eligible employees and their dependents. However, union leaders representing over 2,500 staff and faculty members – including UVM Staff United, United Academics, and United Electrical – argue the audit poses significant risks to personal information and could disproportionately affect vulnerable populations.
Privacy Fears and Data Security
A primary concern revolves around the security of sensitive personal data entrusted to Willis Towers Watson. Union members point to a data breach experienced by the company, which compromised names and security numbers, raising fears of potential misuse or exposure of employee information. “Members are deeply concerned about the security of their personal data when submitting it to a third-party vendor with a history of data breaches,” stated Aurora Nowak, Recording Secretary for UE Local 267, during a protest on campus in .
The requirement to submit documentation also raises anxieties for employees with family members who may be undocumented or identify as LGBTQIA+. Claire Whitehouse with UVM Staff United expressed concern that the requested documentation could inadvertently expose individuals to potential immigration enforcement or discrimination. “In January, we asked the University to protect its workers and students, especially immigrants and trans people, in the face of federal attacks, and now they’re asking us for the very papers that could identify and endanger those people,” she said.
The Audit Process and Union Response
The university began requesting personal documentation in July 2025. Employees who fail to complete the verification process risk having their dependents removed from medical, dental, and vision plans. This potential loss of coverage prompted immediate action from the unions.
UE Local 267, representing UVM’s service and maintenance workers, filed a grievance demanding that UVM bargain over the unilateral implementation of the audit. The local joined with other unions on campus to organize a protest on , drawing significant participation from union members and garnering media attention. The unions assembled testimony from hundreds of employees detailing their concerns about data security, privacy, and potential safety risks.
As a result of the union’s advocacy, UVM has made some modifications to the audit process. Employees now have the option to complete the audit in person with a Human Resources employee, avoiding the need to upload sensitive documents electronically. The university has also provided written confirmation that no eligible dependents will be removed from coverage regardless of meeting deadlines.
Financial Implications of the Audit
The university is paying Willis Towers Watson a fee ranging from $109,000 to $114,000 to conduct the audit, according to Adam White, a public information officer with the university. This cost has fueled criticism from union members, who question whether the expense is justified given the potential risks and the lack of evidence of widespread insurance fraud.
Broader Context of Health Insurance Audits
While the UVM situation is specific to that institution, it reflects a broader trend of employers and insurance providers seeking to control rising healthcare costs. Audits of dependent eligibility are becoming increasingly common as organizations attempt to identify and eliminate ineligible individuals from their health plans. However, the implementation of these audits often raises concerns about privacy, data security, and the potential for unintended consequences.
A similar situation recently unfolded with NJ Transit workers, who protested agency negotiations for a new health care provider in . This highlights a growing tension between cost containment measures and the rights and concerns of employees regarding their health benefits.
Looking Ahead
The UVM unions continue to monitor the implementation of the audit and advocate for stronger protections for employee data. They emphasize the importance of transparency and collaboration between the university and its employees in addressing the issue of rising healthcare costs. The situation at UVM serves as a cautionary tale for other institutions considering similar audits, underscoring the need to carefully weigh the potential benefits against the risks to privacy and employee well-being.
The long-term impact of the audit on UVM’s healthcare costs and employee morale remains to be seen. However, the strong response from the unions demonstrates the importance of employee voices in shaping healthcare policies and protecting sensitive personal information.
