Company stopped Health care retroactively

[phantom21]

What is the name of your state? NY

My company called me at home (I had the flu and was home sick) and told me I didn't have to come in again. This was March 25, 2008. When I tried to use my health insurance card (Blue Cross Blue Shield) somewhat later, I was told it was no good.

When I called BXBS last week, I was told the company had asked that the coverage be cancelled as of March 4, 2008. This was processed by BXBS April 7th. I asked and am waiting for a letter from BXBS giving me this info and more details.

My old company has also not sent me info regarding COBRA.

What are my options here? Were they allowed to retroactively cancel my coverage (I was still working there on March 4th and up to March 25th)? Aren't they, by law, supposed to give me info on COBRA?

Mark

 

[cbg]

They have up to 44 days to provide you with information regarding COBRA.

What does your plan document say about the termination of coverage?

 

[phantom21]

found my healthcare booklet

After finding my healthcare booklet for Blue Cross Blue Shield, I find the following:

According to the coverage, my coverage should extend till the date of expiration of the premium period, i.e., if my termination was March 25, 2008, and the premium was paid till April 10, my coverage continues till April 10. This could explain the reason the company requested retractive termination.

I use April 10 as a date because my coverage begain January 10, 2008.

I will need to contact the health care company and ask when the premium was supposed to be paid to be sure.

And, according to the certificate of coverage I'm entitled to get COBRA or continuation of insurance under NYS Insurance Law.

The question I have now, what is the penalty for my former employer for trying to get the premium "unpaid" by having the insurer retroactively ending my coverage?
And, what are my options for straightening this out?

 

[cbg]

How many employees total does your employer have? It makes a difference where I refer you (COBRA is a Federal law, not a NYS law.)

 

[phantom21]

over 20

the company has over 20 employees.

In the booklet it mentions over 20 means COBRA, fewer means NYS Insurance coverage in some way.

But, the question is, can they retroactively cancel my coverage to a time before I was terminated, what are the penalties - if any - for doing this, and how do I fix this (the legal term is cure?) the situation?

 

[cbg]

Yes, I'm aware that under 20 triggers the NYS continuation; that's why I asked.

1.) can they retroactively cancel my coverage to a time before I was terminated

A retroactive cancellation is not inherently illegal. It is uncommon, but it depends ENTIRELY on what your plan document says.

what are the penalties - if any - for doing this,

I have no idea what penalties, if any, your employer will get and that should not be your concern.

and how do I fix this (the legal term is cure?) the situation?

Since there are over 20 employees and Federal COBRA applies, you would contact the US DOL

 

[momm2500]

cobra

some employees do not realize that when the premiums are taken out of their paycheck that it is actually 2 weeks behind on their medical insurance. this is probably why it is a retro back date. meaning that your last paycheck really only covered you up to a specific date.

here is more information for you:

What process must individuals follow to elect COBRA continuation coverage?
Employers must notify plan administrators of a qualifying event within 30 days after an employee's death, termination, reduced hours of employment or entitlement to Medicare.

A qualified beneficiary must notify the plan administrator of a qualifying event within 60 days after divorce or legal separation or a child's ceasing to be covered as a dependent under plan rules.

Plan participants and beneficiaries generally must be sent an election notice not later than 14 days after the plan administrator receives notice that a qualifying event has occurred. The individual then has 60 days to decide whether to elect COBRA continuation coverage. The person has 45 days after electing coverage to pay the initial premium.


above is the time frame involved. maybe you should contact your former employer and ask for the paperwork or see if they have a company that administers their cobra for them. If you retained your paycheck stubs, check and see when the first premium was deducted and look closely at the dates of your paycheck. it is very rare that you will be paying your premiums in advance out of your paycheck. I also think it is very strange that an employer will fire you over the phone. If done so, have they sent you a letter of termination and see if there is any wording in that letter regarding your health benefits.