Can a company keep you on their employee health insurance plan even though you no longer work for them?

Question Details: My position with a company was terminated due to massive cutbacks. As a part of my severance package my company agreed to keep me on their health insurance (I'm basically uninsurable due to past cancer issues) for 1 year. I've recently been told by a friend of mine who works in HR that this is highly illegal and it's insurance fraud. She also told me that even though I may think I have health insurance, the insurance company could deny my claims if they found out I was not a current employee.

Asked 9/9/2009 under Insurance Law | 211 View(s) | More Legal Topics