Health care deduction from Payroll - Canceled insurance

[TNRidgrnr]

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

My husband was laid off on March 13th of '09. He had medical ins. deducted weekly from his payroll. As far as I know the premiums are deducted in a prepay fashion. Meaning March's premiums were deducted in February. I just received notice that they cancelled our insurance. I still haven't received my Cobra info. My questions is two fold:

1. If it is prepaid then shouldn't his coverage have been terminated the middle of April since he had it deducted up until March 13th?
2. Depending on the answer two one, what should I do and how should I proceed?

I have 3 small kids, one of wich is special needs. Now we have no coverage and I have no info on Cobra yet.

Can SOMEONE HELP AND ADVISE????

Amy in TN

 

[cbg]

1.) It needs to be confirmed that your understanding is, in fact correct. It would be rather unusual, in my experience, for March's deductions to be taken in February. Not impossible, but definitely the exception rather than the rule.

2.) Quite frankly, YOU should do nothing. Your husband should confirm the information above. (His employer has no legal obligation to discuss anything with you.) IF your understanding is correct AND IF the employer refuses to make corrections, he can talk to the US DOL, which is the regulatory agency for ERISA based plans. If I were a betting woman, however, I'd bet that you have misunderstood when the deductions are applied.

 

[TNRidgrnr]

Every place I have worked at deducted the premium the month prior to premium being due. That is why I'm ASSUMING (yeah I know) that that is the RULE for his company as well. But will find out for sure.

My husband is what he calls a "dumb 'ol construction worker". He has NO concept of the rules and regulations that govern these types of things, nor is he proficient in conveying his questions or relaying the answers. I'm taking care of these things because they effect ME and my kids, and if the right things are not asked or done then we ALL suffer!!

Thanks for the info.

 

[cbg]

Not arguing with you; you know what the deductions have been where you've worked and I don't. But I've been administering employer sponsored group plans for, it will be 30 years later this year, and I have yet to see one where deductions for one month are taken out the previous month. Particularly where deductions are taken weekly.

So you definitely need to confirm this because it is by no means the same across the board.

If the employer is willing to work with you, fine, I have no quarrel with it. But IF they refuse to talk to anyone but the employee, they are within their rights.

 

[Zigner]

If the employer totally canceled their insurance, you won't be offered COBRA.

 

[TNRidgrnr]

The employer still has their policy but cancelled our family policy.

Employer told me that it is not deducted the month prior. So what happens now? Say my special needs child has something that he needs to been seen for during this time, and I have no insurance as of right now, what will happen? Will Cobra make our policy retroactive to the date of termination? I'm just worried is all!!

 

[cbg]

COBRA is always, always, always, always, always, by law, retroactive to the cancellation date.

 

[Zigner]

The employer still has their policy but cancelled our family policy.

Employer told me that it is not deducted the month prior. So what happens now? Say my special needs child has something that he needs to been seen for during this time, and I have no insurance as of right now, what will happen? Will Cobra make our policy retroactive to the date of termination? I'm just worried is all!!

Why was the policy canceled?

 

[cbg]

Because he was laid off, as it says in the initial post.

 

[TNRidgrnr]

Thank you for the information. I just wanted to make sure that we weren't going to end up losing everything during this time of change.

I'm sorry if I seemed a little on edge but with so much responsibility with kids and such it just got to me.

Thanks again and God bless,

 

[Zigner]

Because he was laid off, as it says in the initial post.

Duh - you're right of course