What do I do if my employerhas not paid my insurance premiums but continues to deduct for it from my paycheck?

I went to fill my prescriptions and I was notified by the pharmacist that my insurance was no valid. I called my insurance company and they said my coverage was cancelled over 2 months ago. My employer, even after I spoke to him, continues to deduct my premiums from my paycheck. Today I received a bill from a past physician’s appointment and treatments received that day in the amount of $4284. It was noted on the bill, insurance was not in affect at the time of the appointment. Can you direct me in how to correct this situation? What are my legal rights/options?

Asked on September 10, 2011 under Employment Labor Law, Indiana

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

1) The company has a contractual obligation to remit your premiums to the insurer when you have signed up for the insurance and authorized deductions. For violating that obligation, the company is potentially liable for both any and all health costs which you incurred which should have been paid (but weren't, because of the failure to pay premiums) and for providing insurance going forward, for at least the balance of this policy year.

2) Note that if the money was deliberately withheld by the company--e.g. the company itself or an employee pocketed it--rather than simply being an oversight or negligence, then there may be criminal liability as well; taking someone's money when you are not entitled to is theft.

You have legal recourse. You should retain an attorney to help you vindicate your rights. Good luck.


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