by 1NINJAKJOHN » Thu Sep 16, 2010 10:23 pm
I LOST MY JOB ON JANUARY 20, 2010 AND WAS SUPPOSED TO BE COVERED BY MY COMPANIES HEALTH INSURANCE UNTIL THE END OF THE MONTH. I JUST RECEIVED A NOTICE FROM THE INSURANCE ASKING FOR REPAYMENT OF BILLS THEY PAID ON MY BEHALF IN JANUARY. WHEN I CALLED THEM THEY SAID THE EMPLOYER FAILED TO PAY THE GROUP PREMIUMS AND WROTE A LETTER IN MARCH SAYING THEY WERE NOT GOING TO CATCH UP THE PREMIUMS AND CANCELING THE POLICY AS OF 12/31/09. THEY TOOK PREIMUMS OUT OF MY LAST CHECKS TO COVER MY PORTION OF THE PREUMIUMS THEY DIDNT PAY. WHAT DO I DO NOW
Posted: Thu Sep 16, 2010 10:31 pm Post Subject:
Call your employer and see what they want to due about it. If they won't pay you can file suit as this is a civil matter.
Posted: Thu Sep 16, 2010 10:44 pm Post Subject:
If your employer terminated the policy (or the insurer terminated the policy for nonpayment of premium), premium you paid in January is refundable to you by your employer (unless premiums were being deducted retroactively -- in January for December -- which is unusual). If money deducted in January was for January's premium, you should demand its return from the employer. Failure to return the money within 30 days would allow you to sue the employer in small claims court for the amount due.
Unfortunately, you have no recourse against the insurance company since it appears they were acting according to the contract (or lack of it).
It is also unfortunate that your former employer took so long to terminate the policy, because I'm sure that left a lot of other employee's holding the bag for medical expenses they thought were being covered by insurance, too.
You may have some other (obscure) remedy through ERISA, but even COBRA continuation does not apply in your case if the employer no longer provides health insurance benefits to current employees. You could file a complaint with the US Dept of Labor's Employee Benefits Security Administration (EBSA) and see if anything happens.
Posted: Fri Sep 17, 2010 05:44 am Post Subject:
Max, thanks for clarifying my doubt, since I always believed that Cobra continuation helps when the employer fails to provide health insurance coverage. Yes, it's truly unfortunate that the earlier employer took so long to get the policy terminated.
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