Changing Insurance Companies

[convoy71]

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

Ive been working on the process of cancelling a health insurance company obtained thru my work paycheck. I was recently able to obtain far better health insurance.

But the process cancelling the health insurace/work is become even more difficult to finding a good health insurance.

First I called them,they said due to health insurance thru work and you don't pay taxes on it. They said there is an IRS law that I must send the work based insurance a cancellation form(which they sent and I filled out) and send along proof of new health insurance...

They said he your able to fax the process would be faster. I faxed it(with name of new health insurance company, no other details)...I asked how fast would cancellation be, person said immediate. This was a Friday morning. Monday morning I called and now the excuse is, it takes 7 days to process. Someone is either lying and dont know their procedures.

I call a week later, (today, this morning). They recieved fax but according to paper I was asked to fax, I did not send "proof of new health insurance". They said that on the fax paper, "a HIPPA Certificate" is documentation of new health insurance?

HIPPA: Passed in 1996, HIPAA, or the Health Insurance Portability and Accountability Act, helps workers to retain health insurance when they change or lose their jobs and protects the privacy of personally identifiable health information.

The word "proof" is not used or said in that definition. Hey as far as I can read, the work insurance is violating the HIPPA by asking proof of new health insurance!

 

[cbg]

IRS regulations require that you provide proof of other insurance coverage before an employer sponsored group health plan can be cancelled mid-year. A piece of paper with the name of the insurance carrier is NOT proof of coverage - anyone could write the name of any insurance carrier down. Your employer is entitled, under the law, to PROOF in the form of a letter from your new insurance carrier or some other verifiable documentation, that confirms that new coverage is in effect. They may not, under the law, cancel your old coverage until they have that documentation. They would be in violation of the law if they did.

And no, it does not in any way, shape or form violate HIPAA to request this. There are two sides of HIPAA - the ability to change carriers without being subject to pre-existing conditions, and the right to have your protected health information stay private without your written consent for release. Proof of health insurance coverage is NOT PHI under any definition.