employer did not pay premium-we've been cancelled

[CATFIRMAN]

What is the name of your state? MICHIGAN
The company that I work for has taken out 35.00 a week out of my check and everyone else in the companies,(some people more depending on how many people you are covering) they did not pay the insurance payment and we have recieved a letter at the office stating that we have been cancelled. what can we do? The letter stated that we can re-apply in 12 months. IN the meantime, we are being denied payament from our insurance carrier. I personally was denied coverage for 2 Dr. visits in sept. in the amount of 96.00. What can we do to get coverage or get our money returned from the company. They took our money for insurance out of every check but did not pay the insurance company for atleast 2 months that I know of, according to the letter that we got on 12/10/02. I am in charge of statements in my office,and the bills are on the "system" to be paid, they just havent been. How can the company take our insurance money and not pay our insurance.
We need help.
Thank you.
Catherine S. Firman

 

[cbg]

This actually happens behind the scenes far more often than most people know, and unless you're in Massachusetts or if you submit a claim most people never know. Because unless this has happened several times before, in which case the carrier has the right to refuse payment, all the company has to do is bring the premium up to date and coverage will be restored retroactively to the cancellation date.

It can happen for a number of reasons. If the company is in financial difficulties they often have to juggle getting the bills paid, and occasionally miss a deadline. At my current company, it's a long process getting a check authorized, with two different signatures needed on the check requisition and nearly a weeklong process to actually cut the check. We've currently got a suspension on one of our accounts because we mailed the check and either the post office or the carrier lost it.

At the insurance carrier I used to work for, we would always accept late payments and reinstate coverage retroactively unless the company had been cancelled for non--payment three times in a 12 month period. Even then, if they had a good reason we'd sometimes accept it. Most carriers operate the same way. If your employer gets current, you'll have nothing to worry about.

 

[Beth3]

Catfirman, is the company STILL taking insurance deductions and hasn't paid the premiums to the carrier? If the company is taking payroll deductions for premiums and applying them to some other use, that is a violation of federal laws. It's not possible to say whether your employer has acted in good faith and has just gotten a little in arrears in paying the health carrier or something fraudulent is going on but you may always contact the federal Department of Labor if you wish.