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Health Ins. cancelled day of termination Michigan

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  • Health Ins. cancelled day of termination Michigan

    then payment taken out of check. 2 people I talked to said this was illegal
    (to cancel insurance_befor Cobra took over? on same day as termination?
    Thanks for any info_or who do I talk with this about?

  • #2
    2 people you talked to don't know what they're talking about.

    1.) It is quite legal for coverage to end on the same day as employment.

    2.) It is quite common for coverage to run backwards; i.e. the premium that is deducted from your check on December 15 is not for December 16-31, but for December 1-15, as an example. If that is the case, why SHOULDN'T it be taken out of your last check?
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

    Comment


    • #3
      OH, ok

      Originally posted by cbg View Post
      2 people you talked to don't know what they're talking about.

      1.) It is quite legal for coverage to end on the same day as employment.

      2.) It is quite common for coverage to run backwards; i.e. the premium that is deducted from your check on December 15 is not for December 16-31, but for December 1-15, as an example. If that is the case, why SHOULDN'T it be taken out of your last check?
      in the psst I had 30 days from termination date_so as to not have lapse in Health Ins.__
      which DOES make sense. So Ins.Co's. agree to be paid after the fact? Amazing!

      Comment


      • #4
        What makes you think that the insurance company doesn't get paid until after the deductions are taken? That's not how it works, either.

        Just so you know, I've been administering employer sponsored benefits for over 30 years, and I've done it in more than half the states, including Michigan.
        The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

        Comment


        • #5
          If you pay your Cobra payment, your insurance is backdated to the day it was cancelled so there is no lapse in coverage. If you had any doctors' visits in that time, it could be billed to insurance after it is reinstated.

          To cbg's point, I adminster a health plan and it includes Michigan. Premiums are due on the 1st of the month of service (so Dec 1 for the month of Dec) and then the company is paid back with the money withheld from employees' checks during the month of December. Even if I know an employee's insurance has ended (termed after the bill is produced) I have to pay for that employee and get a credit on the next bill.
          I have never seen a plan which offers 30 days from termination. I have seen either coverage ends on the day of termination or the last day of the month.

          Last year I negotiated for a new health plan and we were given the option of how we wanted it handled. I choose the end of the month for ease of processing. If your company contributed towards your health insurance, then by ending it on the day of your termination it saves the company money.

          Comment


          • #6
            all done and cant afford Cobra without a job!

            Originally posted by HRinMA View Post
            If you pay your Cobra payment, your insurance is backdated to the day it was cancelled so there is no lapse in coverage. If you had any doctors' visits in that time, it could be billed to insurance after it is reinstated.

            To cbg's point, I adminster a health plan and it includes Michigan. Premiums are due on the 1st of the month of service (so Dec 1 for the month of Dec) and then the company is paid back with the money withheld from employees' checks during the month of December. Even if I know an employee's insurance has ended (termed after the bill is produced) I have to pay for that employee and get a credit on the next bill.
            I have never seen a plan which offers 30 days from termination. I have seen either coverage ends on the day of termination or the last day of the month.



            Last year I negotiated for a new health plan and we were given the option of how we wanted it handled. I choose the end of the month for ease of processing. If your company contributed towards your health insurance, then by ending it on the day of your termination it saves the company money.
            Thanks for your info. Thanks Thanks Thanks Keep Healthy! Keep healthy keep healthy

            Comment

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