Cobra cancelled

[txdogmom]

What is the name of your state (only U.S. law)? TX

Got Cobra coverage and made a payment via the insurance company's automated phone system for two months (Aug & Sept). Got confirmation number that bank account info was accepted. I'm thinking everything is ok. Of course not.

Got letter 2 days ago that coverage is canceled due to bank account was not valid. Called to insurance company and story changes to NSF. Called my bank and cobra payment amount was never presented to my account and there was always enough money in the account. Bank tells me that automated systems like those used by the insurance company often drop leading zeros on account information. It's the bank's guess that may be the problem.

My position is that I did make a payment and I have a confirmation number to prove it. I have always had money in my account so the NSF reason is incorrect (and I am getting bank paperwork to prove it). The account info I entered was the same one I entered the last time and it had problems then; they told me they would fixed that problem. So when I got a confirm number I wrongly believed the previous system problem was corrected.

The insurance company tells me basically it sucks to be me and they are not going to reinstate the coverage.

Do I have any options? I made a good faith effort to pay this bill.

[ecmst12]

How long ago did you make the payment? When the money never came out of your account, why didn't you follow up?

[txdogmom]

Payment made 8/28. I've never had to follow up on any bill before when I have received a confirm number. It always goes through. I had no idea I would need to watch this one. I got no indication at all that there was any problem so no red flag for me.

[ecmst12]

Nearly 3 weeks with no deduction from the account should have been a red flag.

I don't think there is any way you can FORCE them to reinstate the policy. You can try going up the ladder with your request.

[txdogmom]

Actually the letter from them was dated 9/10 and I did not get it until the 14th. A couple of weeks to process a payment does not send up a red flag.

Be that as it may, as soon as I was notified of a problem I did contact them to rectify it. There was clearly a screw up in their system because it took my information and gave me a confirm number. This is not a case of me being a deadbeat or someone who forgot. I had NO reason to suspect anything went wrong. Too bad my crystal ball was in the shop.

Is there anyone with a legal degree that can offer advice?

I will try to contact the department of labor.

[ecmst12]

You could also try the department of insurance, but I'm just not sure they can help you. Can't hurt to try though.

I understand that you made a good faith effort to pay the bill and had every reason to think it was paid and you are not a deadbeat. I also know that there is very little regulation on this aspect of Cobra administration, and there are a lot of shady cobra administrators out there that look for any excuse they can get to cancel coverage so they can get the person off the rolls, and once coverage is cancelled, that's it, it's over. I'm not sure that the law will back you up here, even though ethically speaking, you are in the right.

[Stevef]

Originally Posted by txdogmom

Is there anyone with a legal degree that can offer advice?

Yup. They're called lawyers. You can click on the link below to find one.