Insurance Premium deducted, but company not paying insurance company

[untillater]

What is the name of your state? Utah

The company I work for goes through another company for payroll. the payroll company decided about 6 months ago that they were going to switch everyones insurance plans, I was told this by word of mouth from payroll. They never said when, they never said that our old insurance was void. On 4/31/07 apparently our policy was dropped by bluecross/blueshield due to non payment, but the payroll company continues to take the premium out of our checks.

I had to go into the ER for a kidney stone 2 weeks ago, this is how / when I find out I am not covered.

I have called the payroll company which imformed me that they will pay out of pocket for the ER visit and that my wife and I "fell through the cracks when they changed insurance'.

I for one believe they owe my family much more than they are offering, I still do not have insurance, and I just checked my paystubb today, once again, they have withheld the premium and still I have no insurance.

any advice / help would be appriciated, sorry about the long post but wanted to be thourough about my situation. thank you.

 

[cbg]

The employer is not legally obligated to provide health insurance. However, if they are deducting premiums without providing the insurance, that's a violation of ERISA and should be reported to the US DOL.

If the cancellation had happened more recently I'd suggest waiting since it generally takes a while before a reinstatement can take place, and cancellations for non-payment are ALWAYS retroactive, but in this case I think enough time has passed to suggest that no reinstatement is forthcoming.

However, please be aware that there is no guarantee that the employer will be required to do anything more than reimburse you for the premiums deducted. They will almost certainly NOT be required to put a new policy in place or reimburse you for medical bills. They WILL be required to return any insurance premiums deducted from your check, but the law does not require the employer to take responsibility for your medical insurance or health care in any state except Hawaii (and to some degree Massachusetts).

 

[untillater]

They didnt really just stop paying, they cancelled everyones and moved our insurance to a new company, except they "forgot" to start my new policy. if that makes it a little more clear.

 

[cbg]

That's a whole different ball of wax.

When you asked them to start your coverage, what did they say?

 

[untillater]

They will add me to the company plan as soon as I go down and sign some forms. getting back on isnt really the problem, its that THEY (payroll) willfully terminatted my insurance without notice, and without cause. They Claim, that I simply fell through the cracks and was not put on the new plan.

Now, I realise this isnt a huge deal in some people's eyes, However, I prefer to play things safe, I have a history of kidney stones and have had to go in for surgury, to have them removed. I cannot afford not to have it. Also, the next problem I have is that my new rates will be far higher than the old if I want my kidney stones covered, as the insurance is calling it a "pre existing" condition. or They want a clause that stipulates no coverage for them.

if payroll had done there job and transfered me with the group, none of this would be a problem.

 

[pattytx]

Just FYI, payroll does not normally handle benefit enrollments and cancellations. HR (specifically, the Benefits Administrator, if the company is big enough) does.

 

[untillater]

this is a little bit different, we are talking about a company that only handles payroll / benifits, I dont even "work" for this company. they just take care of our payroll etc.

 

[pattytx]

That's generally called a PEO (Professional Employer Organization). They take the place of a (many) companys' internal payroll/benefits staff. Being a 30-year payroll professional, sometimes I get a little defensive.

 

[cbg]

Then just go down and sign the form.

You have no evidence whatsoever that they "willfully" cancelled your insurance. Mistakes happen. You have an obligation to mitigate your own damages and if they're telling you that you can get the insurance by coming down and signing a form, you're not going to get anywhere with any kind of claim if you refuse.

None of this WILL be a problem if you just sign the freakin' form.

 

[untillater]

ok, go through all my check stubbs to figure out what they owe me and just sign up on new insurance.

still think thats f' ed up. but ok. Mistakes do happen, doesnt mean there should not be consequences for them.

thanks for the advice.