insurance premiums withheld incorrectly

[grace343]

What is the name of your state (only U.S. law)? OK

My employer's insurance broker verbally quoted health insurance at last years rate, the bookkeeper withheld that lower amount for over 6 months and I have been asked to pay the difference. No documents were signed indicating the amount I should be paying.

 

[pattytx]

It's likely the broker made a mistake in the verbal quote. Ask the bookeeper to see the bill.

 

[grace343]

Yes he quoted in error and the bookkeeper was in error as well. And it seems the company bears no responsibility for the errors made on their behalf.

 

[pattytx]

They don't, although theoretically, they should have gotten a new authorization from you. You did receive the benefit.

How much are we talking about and has the employer proposed a recovery plan?

 

[grace343]

The amount is approximately $3000. I have agreed to pay this over 10 months. It is aggravating because if the insurance had been quoted at the correct rate I would not have purchased it. This was a company wide error, no one knew the insurance cost was increased. Thanks for your replies, I realize this is my debt despite being incurred without my knowledge. I am done with feeling sorry for myself and will move on with a more thankful frame of mind.

 

[pattytx]

Thank you for not shooting the messenger.

At least the company did the "right" thing by spreading it out over a long period of time. If I had been this company, though, I certainly would have questioned the statement from the broker that the cost of the coverage to the employer remained the same from last year; that's almost unheard of these days.

I wonder if the company has any recourse against the broker's employer?

cbg (our expert in all things employer benefits) ?

 

[cbg]

The company may.

The individual employees would not.

 

[grace343]

The broker's postition is that the new premium rates were forwarded to the offfice but not given to employees. So this problem is company wide. I am not sure if he is denying the verbal quote to me. This is a complex mess. My 'take home' is to get it in writing. I was careless and naive to accept a verbal quote even if the office manager and the bookkeeper thought the quote was correct.

 

[TIMMAAYY]

Who goes by a verbal quote? Of the thousands of renewals I have seen, I have yet to see anyone take a "verbal" commitment to heart... ever. Something is either very wrong with your employer or your agent/broker.

I'm going to make a judgement call and say it's your broker for giving a "verbal quote" and your employer's fault for accepting it without seeing anything in writing.

What a mess. Hope this works out for you.