My friend's employer swapped them to a new health insurance plan and has already started charging them the premiums even though there's no coverage yet. Some kind of "paperwork problems." He's about to get charged for the second nonexistent month of coverage. So that's $600 in the hole in return for... nothing.
Is there any way this could possibly be legal?
Of course he's already planning to talk to the local Labor department if he doesn't get a refund, but I thought I'd toss it out here too.
2007-01-19 08:33:45 · 5 answers · asked by pixelscapes 3 in Business & Finance ➔ Insurance
Group health insurance premiums are "pre-paid". Premiums that are taken out of your check in Feb. will pay March premiums, etc. There is usually only a two week (or one payroll cycle) advance payment though. I have seen it go as far as one entire month in advance, but this is somewhat rare. Anything beyond that and there is probably an issue with the enrollment paperwork. If the effective date of the benefits are changed, then he would be entitled to a refund of the premiums already paid for months there was no coverage. The employer usually will have an Insurance Agent that helps with the benefits. Find out who that is and they may be able to help.
I hope it works out....
2007-01-19 10:53:46 · answer #1 · answered by Brian D 1 · 0⤊ 0⤋
Ask the Benefits Administrator in your company for complete disclosure/resolution of the matter. They are required to provide information within 30 days. You can even write to the local Employee Benefits Security Admin office (run by DOL). Go through ERISA rights on Dept of Labor website.
2007-01-19 12:52:48 · answer #2 · answered by inquisitive_me 1 · 0⤊ 0⤋
confident, it particularly is particularly uncomplicated simply by fact the enterprise owes the coverage enterprise in July for insurance that starts in August. it could be unusual for them to pay the top rate and deduct it. in the event that they owe it then why would not you? No vast deal however because you may in simple terms make the declare on your contemporary coverage. that's the plan you deliberate on retaining till your new insurance went into result on August 1st.
2016-12-12 15:31:03 · answer #3 · answered by Anonymous · 0⤊ 0⤋
My guess is the coverage will be retroactive and therefore the issue will resolve itself.
2007-01-19 08:59:53 · answer #4 · answered by mamatohaley+1 4 · 0⤊ 0⤋
If they make the coverage retroactive, then it's legal. If they don't, that's a problem.
2007-01-20 00:04:59 · answer #5 · answered by zippythejessi 7 · 0⤊ 0⤋