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laid off and employer terminated insurance coverage without notice

laid off and employer terminated insurance coverage without notice


Old 03-04-07, 03:53 PM
Thread Starter
Join Date: Mar 2007
Location: greensboro
Posts: 17
laid off and employer terminated insurance coverage without notice

I was laid off on 01/03/07 due too lack of work and on 01/07/07 my employer terminated my insurance coverage without telling me but took the money out of my last 3 checks for the coverage and now I have doctor bills that have been kicked back by the insurance company that i can't afford to pay plus medications i can't afford too buy, I was waiting for them too offer me the cobra program so i could keep my coverage for the prescription coverage and monthly lab work that i have too get due to the medications i take but they just terminated my coverage with out notification.

Is there any thing legal I can do about this, aren't they suppose too give me 30 days notice before stopping my group insurance coverage??????

I live in North Carolina.

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Old 03-10-07, 09:35 PM
Join Date: Mar 2007
Posts: 75
terminated insuance

Under a federal law you have rigts under what is called "COBRA". Your employer has an obligation to keep your coverage in place for I believe is about 1 year or 18 months. It's one or the other. But you have to pay the premiums if you want to keep this benny.

Good Luck!

Last edited by bmwgolfguy; 03-11-07 at 05:29 PM.
Old 07-26-07, 10:50 PM
SeattlePioneer's Avatar
Banned. Rule And/Or Policy Violation
Join Date: Jul 2007
Location: Seattle, Wa
Posts: 5,503
Interesting situation. I'm not an attorney, but I'll make a couple of comments.

Since they deducted the money from your paycheck for insurance, I'd be inclined to suppose that they had an obligation to use that money to buy you the insurance. You might have a civillawsuit to recover what the insurance would have paid, and might have a claim for fraud since they took your money and didn't buy the service the money was for.

In my area, the county bar association will arrange a 1/2 hour of time with a lawyer specializing in the area of law you are concerned with for $50. Your county bar might have a similar arrangement. I think it would be $50 well spent.

Seattle Pioneer

Last edited by stickshift; 07-27-07 at 12:08 AM. Reason: Removed quoting of entire post
Old 07-27-07, 12:10 AM
Group Moderator
Join Date: Oct 2004
Location: WI/MN
Posts: 18,716
I agree that consulting an attorney is well worth any cost you may incur. If the employer deducted money for insurance premium but said money did not reach the insurance company, you probably have a strong case. You also have a duty to act on this quickly.
Old 08-25-07, 06:33 AM
Integrator97's Avatar
Join Date: Apr 2002
Location: NW Arkansas
Posts: 570
Well, this is a bit old, but maybe somebody will benefit. I am not an attorney, but I am an employer.

Depending on the size of the business (I think less than 50), cobra laws don't apply for small business. But continuation does, at least in Arkansas. Not sure if that's a state thing or federal.

Was your policy a group policy or individual? If it was individual, you would have been paying 100%, and you could have taken that with you, with no price change. In that case, I'm not sure if your employer had any obligation to inform you of anything, other than any money deducted should have paid been paid to insurance. If he took money and didn't pay it, that would be stealing I would think.

If it was a group, and a larger business that is required by law to follow cobra, they had an obligation to inform you of your rights, and you can sue, etc. There should have been a form telling you your cost under cobra, that you have to sign accepting or declining.

If it was a group, and a small business not required to follow cobra, and IF continuation is federal or applies in your state, they would still have been required to do the above things. The difference is that cobra is for 18 months, and continuation is 90 days. There are some other things also, but I don't remember them.

Anyway, it doesn't sound like they acted in good conscience to say the least.

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