Can my employer terminate my insurance without notice?
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Can my employer terminate my insurance without notice?
My employer terminated my insurance without notifying me in the middle of a health crisis of sorts, and I am now uninsured with medical needs, do they have to notify me of cancellation of my insurance before its cancellation date?
Asked on November 1, 2019 under Insurance Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
Yes, they do. The health insurance is part of your compensation: that is, it is part of what you agree to work for. While the employer can cancel it unless you had a written employment contract with the employer guarantying you coverage for some set period of time (in which case it could not be cancelled until the expiration or other lawful termination of the written contract), the cancellation is only effective from when they notify you forward. Until notice of cancellation, since you were still working in exchange (in part) for that insurance/coverage, they were obligated to provide it: they cannot retroactively cancel coverage for which you had worked. If the coverage was canceled prior to them notifying you, you could sue them for "breach of contract"--for violating the oral (unwritten) agreement between the two of you pursuant to which you worked in exchange for coverage--for force them to cover/pay for any claims that would have been paid by your insurance had it not been cancelled.
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