Company paid Health Insurance

[Barbchat]

I was recieving company paid health, vision, and dental insurance at an Oregon company I have been with for over two years. Employees were told as of Sept. 1, 2001 that insurance benefits would be medical only and partial premium payment would come from employees. Since employees knew of impending insurance change on Sept. 1st, advantage was taken of our full insurance benefits. On August 22, 2001 employees found out that Regence Blue Cross Blue Shield cancelled our insurance retro-active back to July 1, 2001 due to non-payment of premiums from our employer. Employees are now liable for any medical, dental. vision bills incured for July, 1 through Sept. 1. I owe $1200 in dental bills alone. Is it possible to get reimbursed from our employer? Our employer filed chapter 11 on August 24, 2001.

 

[ALawyer]

Wages and similar items generally receive priority status under Chapter 11 and other Bankruptcy provisions. The funds deducted from your paycheck do receive such treatment.

BUT if there is no money there there may not be anything to use to pay the claims.

I am not aware of anyone retroactively cancelling insurance other than for fraud-- it is historically only done prospectively - after notice. You may wantto ask the regulator oif the Blue Cross plan about this, either the Insurance Department or other body, as that varies by state.