What to do if my employer took money that I paid it for COBRA but never in turn paid it over the insurance company?

I was fired from my job and had the right to get COBRA, which I acted upon. The health agent for the company said I had 60 days to get my money in to my employer. My employer said I had 24 hours. Again, the agent said that was not so and in fact told me that my employer tried to have my coverage cancelled effective immediately. He also told me that my employer could not mess around with your right to get COBRA as it would be a felony. I sent the money in to my employer within 4 days (which is when he received it) because he wanted a cashier’s check as I did and I also wanted to send it return receipt requested. He got the check ( and it was quite expensive) he signed for it and i received the return receipt requested card back in the mail with his signature on it twice. This was for last month. I then went to the doctor and had a procedure done. I chose to cancel my BCBS COBRA for this month because I wantedto find a less expensive health care policy. I now find out from BCBS that my COBRA was never sent in by my employer and it this is not resolved the April claim will be reversed and I will have to pay out of pocket. Can my employer do this? He took my money, he said that he mails the premiums in? What do you call this. He gets the money and I get nothing? Can you help me and tell me what type of attorney I need to seek and, if in fact, I have a case?

Asked on May 28, 2012 under Employment Labor Law, Louisiana

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

From what you have written about, your former employer engaged in an improper act by accepting your COBRA payments and not sending them in your your insurance carrier.

What you need to do is contact your local labor department and make a complaint over what happaned as to your former employer. You also should consider consulting with an attorney that practices in the area of employment law as soon as possible. The reason is that you seemingly are not covered under any medical insurance even though you have paid for such under COBRA as a former employee.


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