Disability Insurance Payments

[dryantd]

What is the name of your state? What is the name of your state? Tennessee
I am on long term disability. I have insurance through my former employer as my secondary insurance. I have been on disability for about 4 years and my employer hasn't charged me for the insurance. Now my former employer realizes they have made a mistake and want 4 years of insurance payments. I feel like I shouldn't have to pay because it was their mistake. What do I do? Do I owe them for 4 years of payments?

 

[ALawyer]

My sense is that unless the plan says they pay health insurance costs during disability (few do) you are stuck. It is possible a statute of limitations may bar some of the claim. And you probably can negotiate some sort of a compromise with them -- but if they sue you, legally they likely would win at least if there was no detirmental reliance that caused you to retain it and you otherwise would have done something else.

 

[dryantd]

Thank you for your reply. If I am sued, will I lose my insurance benefits (group insurance)?

 

[ALawyer]

This is one where the stakes are high enough that you should use a local professional to assist you and look into any specific laws your state may have, review the exact terms of all the benefit plans offered by the employer, and possibly negotiate a deal for you. It can be done on a cost-effective basis. One on my concerns is that many disability plans run for but 5 years.