Is health insurance binding on the insurer if it is offered to an employee in a severance package?
Question Details:
I lost my job at the end of the year. My office was located in FL but the main office is in MI. I have health care coverage under BCBS of MI. My employer provided me with one month extra coverage through the end of this month. I am planning on having surgery this month and I am concerned about the insurance coming back to me. Is health insurance coverage binding on BCBS if it is part of a severance package, even if I will not be receiving any more pay?
It's not so much a question of it being binding on the insurer, since the insurer is not a party to the severance agreement (a party cannot be bound to an agreement to which it is not part) as the fact the agreement is binding on the employer--they need to make sure you get the coverae, if that's what they agreed to, or else potentially be liable for medical costs for that month. The above, said, it would be prudent, before getting the surgery, to check with your former employer that they paid for the month, and to check with your insurer that they actually have you as covered for that month.
