no health insurace after recall to work

What is the name of your state? I live in arkansas. My question is for my father-in-law. He has worked for a small company for 14 years. He was laid off and called back a few months later. He was told to fill out a new application for employment. He has a hernia that needs to be operated on and he was informed by the company he has no insurance now. Can they do that?

It depends on what his status is and what the eligibility terms are in the group health contract. We don't know if his employment was actually terminated when he was laid off, whether this recall is a reinstatement (with no loss of seniority), or whether he is being rehired (since he had to fill out a new application, this appears to be the case) and what the waiting period is, if any, for being re-enrolled in coverage.

Only your F-I-L's employer can answer these questions. It sounds like he is being rehired with a new senority date and will have to satisfy the waiting period called for in the group health plan. He should ask his employer what that is and when he will be eligible for coverage.