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Insurance coverage cancelled

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kcchiefs

Junior Member
What is the name of your state?KS
My husband is self employed and had health insurance coverage through NASE (National Assoc. for self-employed). His policy consisted of 2 separate parts, 1 was the health insurance and 2 was additional assistance for small businesses for tax issues etc. In November of 2004 he wrote a letter to the insurance company to terminate the 2nd part coverage (tax issues etc.) as of 1/1/05. The letter made it perfectly clear that the health insurance was not to be cancelled. The premium for the policy was always taken out of our account at the beginning of the month. In february we noticed that the insurance company was only taking out $35.00 (for Jan. and Feb.) and not the amount for his health insurance. We called and were told that the health insurance was cancelled with the letter he sent. If he intended to cancel the additional coverage he should have sent the letter to a different address, as this was handled by a different company. The premiums for both parts were always taken out together in 1 transaction so they obviously didn't have a problem distributing the money to the right place.
Anyway, the insurance company refused to re-instate the policy. They were willing to start a new policy, where my husband would have to go through all the waiting periods again! Finally a couple of weeks ago, after getting the agent involved they offered to re-instate if we backpaid all the premiums since January, which we don't have the money to.
While all this is happening, they are still happily taking out the money of our account for the additional coverage that was supposed to be cancelled as of January 1st. We finally got that cancelled after april's payment, but they also refuse to refund this money.
Is there anything that we can do? Can we get any insurance commission or agency involved? Can we file a complaint against this insurance company or with the better business bureau?
Any advise is greatly appreciated!!!
 


kcchiefs

Junior Member
purple2,
thanks for taking the time to read my post and giving advise.
We did contact NASE, at first they didn't want to do anything and after we got the agent involved, they said they would reinstate the policy if we backpay all the premiums to January 1st, which we don't have the money to at the time.
Where can we go from here???
thanks again,
kc
 

purple2

Member
IMO, there is nothing further you can do. Check back on this thread to see if the other posters have further ideas though.

The reason for my opinion is that your insurer did offer you the opportunity to recoup the past coverage, and you declined. If I understand your post correctly, you desire reinstatement of your former policy but are unable/unwilling to pay the premiums that would entail. I doubt any insurer would to give you that coverage without a premium. They are entitled to collect a premium, and I can't envision any regulator would dream of forcing them to cover you without it.
 

kcchiefs

Junior Member
thanks purple2!
I understand what you're saying. And I think you probably are right. My thing was, that they did not offer to reinstate right away (in February) where the back premium would have only been 2 months. They offered this in April, we are talking about 4 months in back pay for health insurance now, which is a lot of money to us. But I see your point!
How about the fact that they kept taking out the money for the cancelled part of the insurance though? Any thoughts on that?
thanks so much,
kc
 

somarco

Member
First, shame on you for picking NASE. If you Google NASE or Mega life your eyes will catch on fire over the the flames this organization has endured for several years.

Secondly, you cannot cancel your membership in NASE and keep your health insurance. The health insurance is only available to NASE members. Cancel your membership, the health insurance goes with it.

Third, is there a good reason why you dont have back premiums?

Fourth, you are better off to pick a new plan with a new carrier. This time get a REAL major medical plan with predictable limits on major claims.
 

ablessin

Member
You can't file grievances and complaints and then expect the carrier to turn around and kindly help you.

I agree, where did the premium monies go the past 4 months? If you knew the $ was not being deducted from your account, why did it take you several months? You should have been on the horn with them the day after the premium was not taken from your account asking WHY not? I know premiums are high, but you still should have that money available to pay the back premiums. Where did it go? However, :
I agree w/above, take your business elsewhere - get a fresh start and make darn sure it's paid for monthly.
 

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