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Termination of insurance benefits
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Termination of insurance benefits
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
I have recently been involved with a case where an ex-employee had their Cobra medical benefits terminated due to non-payment. No warning notices were issued. The benefits were terminated as of 3/1/99
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Forums » Topic Forums » Legal Forum » Termination of insurance benefits
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Termination of insurance benefits
posted at 7/29/1999 8:49 AM EDT
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Posts: 2
First: 7/29/1999 Last: 7/30/1999 |
I have recently been involved with a case where an ex-employee had their Cobra medical benefits terminated due to non-payment. No warning notices were issued. The benefits were terminated as of 3/1/99 yet the notice of termination was issued via mail on 6/17/99. Is there any chance of negligence or liability for past bills due to the delay in issuing the termination notice. I look forward to your response. |
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Termination of insurance benefits
posted at 7/29/1999 11:04 PM EDT
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Posts: 16
First: 7/29/1999 Last: 10/23/2002 |
Was an initial COBRA notice sent? If so, I don't think so, because the former employee certainly would know that they failed to pay for 4 months. However, you may need to check with your state law, since federal and state COBRA regs. may vary.
Who sent the termination notice, the ins. carrier? Did the person make any payments or just let the coverage lapse? I am afraid your situation brings up more questions than directly helpful answers. Post again with more info. |
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Termination of insurance benefits
posted at 7/30/1999 3:27 AM EDT
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Posts: 2
First: 7/29/1999 Last: 7/30/1999 |
Thanks for you response.
A Cobra notice was sent and the employee was enrolled. After apx six months of paying and receiving service, the employee failed to pay due to an oversight. There was no late payment notice sent. The only notification was a letter stating that the policy had been terminated. This was sent by the Cobra administator at the outsourced HR firm. Thanks |
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Termination of insurance benefits
posted at 8/1/1999 7:01 PM EDT
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Posts: 2217
First: 6/16/1999 Last: 12/13/2001 |
What does your initial COBRA notice provide and/or what are your practices regarding notifying employees' of their obligations to pay premiums? For example, if you informed the employee that you would submit monthly bills or requests for payment, and failed to do so, and then failed to provide any notice prior to the notice of termination, I could see a problem. |
Forums » Topic Forums » Legal Forum » Termination of insurance benefits
