H
Hartwell
Guest
I am recently divorced (Texas) and under the terms of the final decree, I am required to pay my ex-wife’s premiums until such time that a new policy is issued. On April 2, my controller (I own the company) sent my ex a letter advising that pursuant to her written request to continue under our group plan, that a new policy had been issued. In his letter her provided her with the new policy number, etc., and advised her that unless the premium was RECEIVED on or before May 2, a full month later, that the policy would be canceled. Less than a week later, we sent her a copy of the actual policy.
On May 2, the date set as the deadline for receipt of her premium, we still had not received her premium. As a curtsey, shortly before noon I sent her an email and left a voicemail advising that we had we had not received her premium and reminded her that unless we received it before the close of business that day, her policy would be canceled. She acknowledged receipt of the messages but made no effort to pay the premium. Therefore, her policy was canceled at the close of business on May 2.
The next day, May 3, she showed up at my office with a check in hand for the premium. We refused to accept it because 1) the policy had already been canceled and 2) I do not want her on the plan because she abuses the benefit by consulting doctors gratuitously resulting in a deplorable claims experience creating much higher premiums for the entire group. Therefore, we refused to accept her check.
Now her attorney is making all kinds of noise about a 60-day rule under COBRA. However, my understanding of the rule he is talking about is that it is the beneficiary’s right to elect coverage, not the employer’s right to expect premium payment once the coverage has been elected. Since she made the election in writing several weeks ago, I think his argument is misguided. Besides, I don’t believe COBRA is relevant here in Texas anyway. My understanding is that the law here is governed by Texas Health Insurance Continuation (or words to that effect), not COBRA.
My question is, given these circumstances, am I on solid legal ground in canceling her health policy?
Thank you.
On May 2, the date set as the deadline for receipt of her premium, we still had not received her premium. As a curtsey, shortly before noon I sent her an email and left a voicemail advising that we had we had not received her premium and reminded her that unless we received it before the close of business that day, her policy would be canceled. She acknowledged receipt of the messages but made no effort to pay the premium. Therefore, her policy was canceled at the close of business on May 2.
The next day, May 3, she showed up at my office with a check in hand for the premium. We refused to accept it because 1) the policy had already been canceled and 2) I do not want her on the plan because she abuses the benefit by consulting doctors gratuitously resulting in a deplorable claims experience creating much higher premiums for the entire group. Therefore, we refused to accept her check.
Now her attorney is making all kinds of noise about a 60-day rule under COBRA. However, my understanding of the rule he is talking about is that it is the beneficiary’s right to elect coverage, not the employer’s right to expect premium payment once the coverage has been elected. Since she made the election in writing several weeks ago, I think his argument is misguided. Besides, I don’t believe COBRA is relevant here in Texas anyway. My understanding is that the law here is governed by Texas Health Insurance Continuation (or words to that effect), not COBRA.
My question is, given these circumstances, am I on solid legal ground in canceling her health policy?
Thank you.