Quote Insurance – Some Companies Drop Health Insurance Without Notifying Employees
Get a health insurance quote - Here one day, gone the next–that’s the fate of employer-based health insurance for many employees today. But while it isn’t uncommon for employers to eliminate health benefits in a struggling economy, a new trend in the American workplace is out of the ordinary: a number of employers aren’t notifying their employees that they no longer have coverage.
According to an article from the Raleigh News & Observer, it’s an illegal maneuver in many states, but it’s happening anyway: “It’s a practice that’s on the rise, says Kristin Milam with the state Department of Insurance. [North Carolina] law requires that companies give their workers 45 days notice if they’re going to drop coverage. Milam says that employees of businesses that don’t follow the law often find out their coverage has lapsed when they go to the doctor’s office.”
If a complaint is filed with the state’s insurance department, the employer may be given an opportunity to reinstate benefits and pay the back premiums to fill any gap in coverage. If the employer fails to cooperate, the state will likely pursue a legal case against the company. State insurance departments will also help employees understand their options going forward.
The article briefly mentions a high-profile case of an airline CEO who terminated health benefits for over 300 employees without notification. He was charged with one count of willful failure to pay group health insurance premiums.
