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

UPDATED: May 28, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption