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Health insurance cancellation inconsistent with all other terminated/former employees

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I'm in Georgia.

I left my former employer on 3/10/06 after 2 yrs 10 months of employment. I gave a few days more than a two week notice and my performance was praised during my notice.

A few weeks after leaving that position, my former employer discovered I had gone to work for our largest customer. A long and nasty battle over my non-compete/non-disclosure agreement ensued and, in the end, the court ruled in my favor. I was also able to recoup my legal fees.

I thought all the nastiness was over until I received a letter in the mail today from my former insurance carrier. It claims I owe them just over $300 for medical claims they paid after my last date of employment (3/10/06). The benefits were paid for medical services between 3/11/06 and 3/28/06.

Here's the problem- the company's employee handbook clearly states that insurance coverage continues until the end of the month of the last day worked. That would make my final date of coverage 3/31/06.

I should also add that I was the group adminstrator for this insurance policy for the entire time I worked for the company. During that time, at least six employees either resigned or were fired with and without cause. In ALL of those instances, insurance coverage was continued until the last day of the month of the last day worked.

The insurance company won't give me a direct answer on why I was the exception or how they would allow it. They also won't allow me to see the stipulation about terminations that is only contained in the Group application.

It is clear that this is a last ditch effort to exact revenge on me by my former employer. My current employer has been so gracious as to offer to either pay the amount on my behalf or back date my insurance to begin on my first date of employment which was 3/13/06. I'd rather fight to the death than do either.

Do I have any recourse here?
 


CraigFL

Member
A lot may depend on what you paid for that month. Some companies collect healthcare payments from you in advance so that you may have had deductions in September that covered your part of the premiums to the end of October. This would be a case for you being able to obtain benefits until the end of Oct.

My Blue Cross requires me to pay the premium for Oct by Oct 1st. This means I'm semi-committed to all the employees until Oct 31. I collect employee contributions to premiums in arrears so I can get credit for someone who quits on the 10th, effectivly ending their insurance on that date.
 

cbg

I'm a Northern Girl
I used to work for a national insurance carrier as a small group specialist, and we used to point out to employees of the small groups we covered that it was the last day of the POLICY month. While most of the time that was the 30th or 31st, there was a fair percentage of clients on my list that had the 15th as the last day of the policy month, and I even had one where the last day of the policy month was the 7th.

We let the client companies pick the date. I don't know why they wanted the policy month to run from the 8th to the 7th, but they did.

Just offering up the possibility.
 

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