Health Plan was a sham

[davking]

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

I was offered a job in the not so distant past and as part of the Job offer there was a helath plan offered. I have written proof of this as well as efforts to gain information on enrolling in the plan. Questions were dleiberately never answered and it has become painfully obvious the plan is nonexistent.

What if anything is my recourse at this point?

Thanks in advance.

 

[pattytx]

So, did you take the job? If so, was your decision predicated primarily on this benefit?

 

[davking]

So, did you take the job? If so, was your decision predicated primarily on this benefit?

Yes I did, and I chose it over another offer because of the benefits.

 

[pattytx]

Did you leave another job with benefits for this one?

Could have been that they decided the plan was too expensive between the offer and the time you started.

Could have been a lie.

When you ask them about this, what do they say? Are you talking just medical insurance or other benefits as well?

 

[davking]

Did you leave another job with benefits for this one?

Could have been that they decided the plan was too expensive between the offer and the time you started.

Could have been a lie.

When you ask them about this, what do they say? Are you talking just medical insurance or other benefits as well?

I was unemployed but had the choice of two jobs, one a contract (w2) and this one. They indicated in the offer letter there was a Health Plan.

They never answered ANY questions about the plan or how to enroll it. They said nothing and in the end it was obviously a lie, ie: fraud in my opinion. I had COBRA but it was running short.

My point is, it was clearly never offered so their claim was essentially an act of fraud. Is there any recourse in this?

 

[pattytx]

But when you asked them about enrolling in the health plan, what was their response? Certainly, they didn't just walk away?

Problem is, what are your damages? It's likely you wouldn't have had any benefits with the other offer either and, depending on how recently it happened, you could probably reinstate your COBRA coverage, at least until the 18 months is up (then you wouldn't have insurance either).

 

[davking]

But when you asked them about enrolling in the health plan, what was their response? Certainly, they didn't just walk away?

Problem is, what are your damages? It's likely you wouldn't have had any benefits with the other offer either and, depending on how recently it happened, you could probably reinstate your COBRA coverage, at least until the 18 months is up (then you wouldn't have insurance either).

They basically did walk away. They simply wouldn't acknowledge the question or give an answer. My question is geared towards, with written proof of this, have they violated any kind of labor law?

 

[pattytx]

Labor law? No.

There may be a slight chance of a detrimental reliance claim, but again, your problem there will be proving damages.

Would they be willing to pay you extra so you could buy your own insurance? Do you otherwise like the job? Job-in-the-hand in this economy is nothing to sneeze at. Just sayin'.

 

[Beth3]

Everyone is assuming that the OP's employer doesn't have a health plan. It's quite possible they do and decided not to offer it to the OP.

davking, if they do have a health plan and you meet the criteria for participation outlined in the Plan Document and they have refused participation, then that's a violation of federal ERISA regulations. I suggest you contact the federal Department of Labor and discuss the situation with them.

Labor Day 2010 from the U.S. Department of Labor

 

[pattytx]

We're probably assuming that because, otherwise, why would the employer refuse to answer the OP's question?

Or, it's also possible that they do have a health plan and he's just not eligible yet as a new employee.

OP, you have to find out whether there is a plan or there isn't.

 

[davking]

So far I've focused on the health plan, the whole is as folloews. At the time the company inquestion hired me, I chpse their offer over another one because the other was a W2 contract and didn't have benefits, this one claimed to. Very quickly though things wentsouth. The payroll paperwork was mishandled, and the check was always late, and the first two (out of three) had no taxes withheld. The only reason the check was received at all is because I kept reminding them.

The pay was however received within thirty days so I can't really do anything about that, ultimately it was received although the lack of with holding is a concern. But the offer letter clearly indicated that there was a Health plan, it was the basis of my decision of one job over the other. After having been there a short time, I began to request information on how to get enrolled in the plan. Over the five weeks that I was with the company, they dodged the subject every single time. I was never given any indication of who the Health Plan was through, how to enroll, or if I had to wait for 90 days to be eligible, no information whatsoever. What I do having in written documentation is the offer letter promising the plan, and three requests for information on my part in writing, none of which got a response over a five week period. Ultimately I asked why it was os hard to get an answer and the next day I was let go, the employer citing "it wasn't working out". It's my opinion getting rid of me was easier than addressing my questions and/or the payroll issues.

With a hopefully clearer picture, and in particular regard to the Health plan, does that consitute fraud on their part. I would think so. If it legally doesn't, I would appreciate education on whatever loophopes they may have.

thanks

 

[Zigner]

If there was a 90 day employment requirement, then you didn't meet the requirement.

I am curious, why are you so focused on the other job (the one you passed up) being a "W2" job? Are you considered an independent contractor at the current job? (ok, it's not current because you no longer work there)

 

[pattytx]

And getting rid of you because it was easier to do rather than deal with your questions, although not terribly fair, was not illegal.

IMHO, it's not worth bothering with at this point. If it took three paychecks before taxes even got withheld, it's obvious they were inept at best, and intentionally violating IRS regulations at worst.

 

[TIMMAAYY]

davking, if you are healthy, set up a 105 plan document and get your own individual plan. All of your medical related expenses will be a business expense.

If you are unhealthy and married or have an employee, set up a 105 plan document for reimbursement and get a group plan ( group of two ). You can hire your spouse and pay them in benefits only.

Could be you didn't meet the waiting period requirements as stated above, so you were never offered the plan ( not uncommon ).

Either way, get your own plan. That way, you'll never have to worry about getting coverage from someone else. In the near future, when they don't allow pre-x'ing for individual plans, everyone can go out and get their own insurance. Group plans will die out as most people know them, along with the agents that sell them. Get your own plan now and be ahead of the curve.