former employer canceled insurance too soon

[fivestar]

I live in Massachusetts. On 6/30/00, my former employer sent us a form to renew our insurance. We were given until 7/24/00 to elect to continue coverage, or it would end on 7/30/00. We chose not to continue since I was leaving the company. I had a doctor's appt. on 7/10/00 which I kept. The insurance won't pay because the company canceled insurance on 6/30/00. The company won't change the date with insurane company, so now I got a letter from a collection agency with bill plus interest. (originally $330.00, now its $364.37) I still have the original form they sent with the dates. There has got to be something I can do. Please help.

 

[cbg]

Very important. Did the COMPANY cancel coverage or did the insurance carrier?

 

[fivestar]

The company canceled insurance. The insurance company said they can't pay unless the company reopens. They won't do it.

 

[cbg]

Back up. Company reopens? When did they close?

I think we're missing some important facts here. What was the reason the company said the insurance was being cancelled? What was your last day of work for them?

 

[fivestar]

Last day on the job was 6/30/00 which was the date of "qualifying event" for continuing coverage on cobra enrollment form. "Date coverage will end if continuation is not elected: 7/30/00" ...."last day to elect: 7/24/00"
I assumed (incorrectly) that I had coverage until the 30th of July unless I chose to continue coverage for up to 18 months.
It makes no sense...Even if I had chosen to continue coverage, it would have already been cancelled. Does this make sense?
***I appologize for the first message posted...I said Iwas given a form to renew insurance, I should have said to continue coverage***

 

[cbg]

I had written a long response to you and then my system went down before I got to the submit button. Here's trying again.

Traditionally, when an employee leaves the company for whatever reason, the employer cancels their insurance coverage effective the last day of work or the last day of the month (whichever is stated by the insurance contract - in your case the last day of work is the last day of the month so it's immaterial) and, if coverage is elected, coverage is reinstated retroactively so that there is no gap in coverage. Assuming that your company had more than 20 employees and was dealing with Federal COBRA instead of the state continuation policy, they did a couple of things wrong, even though cancelling your coverage effective the last day of work was not one of them. They should have given you 60 days to elect coverage, and 45 days to send in your payment. They are not required to reinstate coverage until they have your check in their hands.

I have a vague idea where the July 31 date may have come from, but will have to do more research on it. Towards that end, though, did you have access to other coverage (which perhaps you did not take because you thought this coverage was still in force) and if so, did they know it? Perhaps through a new employer?

It's possible, assuming the company is still in existance (you said something about reopening) that you might be able to hold them liable for the bill, given that you have the July date in writing. The insurance carrier is correct that they cannot make payment without the company's say so. Ask the US DOL (they cover COBRA issues) about the company's liability.

 

[fivestar]

Thank you! (This being my first time using this forum , I'm very impressed. You've already proved to be extremely helpful.)
You have given me new hope. One question though, and it may seem a dumb one to you, what is US DOL? and assuming its an organization or business, how do I get in touch with someone there?

 

[cbg]

I'm referring to the United States Department of Labor. Since COBRA is a Federal law, they have jurisdiction rather than the state law. If your employer had less than 20 employees, post back, because if that's the case we're dealing at the state level rather than the Federal.

I don't know what part of Massachusetts you're in but if you are in the Boston area, the local number is 617-565-9675 - at least, that used to be the number. I haven't had to call them recently and I'm working from an old list. But start there.

 

[fivestar]

Thanks again. I'm from the New Bedford area (Bristol County) The company is based in Framingham, though. They are a big company and it was a Cobra form I was sent. So I'm sure you gave me the right number. You've given me enough information to get started. I should be able to get the number if the one you provided is not current. Hopefully they'll be able to help me. Many thanks

 

[fivestar]

**Just to let you know, I called the US Dept. of Labor, got referred
to PWBA...then got referred to Patient Advocacy...then got referred to Consumer Affairs Div. of Insurance...then got referred to Labor Relations Comm. and finally (hopefully) the Attorney General. I wouldn't have believed it if I didn't go through it myself. No one seems to handle my situation. I stopped yesterday because everyone was closing up. I intend to begin again shortly where I left off...Attorney General's. *I'm almost positive someone there will refer me to one of the above* I'll post one more reponse, just to let you know if this was all a learning experience, and nothing else.



That was quicker than I expected. What's the saying?...persistence pays off? It took two seperate calls to the attorney generals' before I got a helpful response. For your future reference, the # was 727-2200 X3466 for attorney general's insurance regultion div. It will take a month but the case will be assigned a mediator.
**Thanks CBG for pointing me in the right direction

 

[cbg]

Glad it helped. And thanks for the updated number - I can't remember the last time I had to deal with the insurance division.

Good luck and let me know how it comes out!