What to do if an employer gave the wrong termination date to a health insurer thereby causing non-payment of services and damaged to the insured’s credit?

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What to do if an employer gave the wrong termination date to a health insurer thereby causing non-payment of services and damaged to the insured’s credit?

The termination date given: 9/30 but the actual termination date was 10/18 (and it was supposed to go to the end of the month). The employer was still taking insurance payments in October. The employer states that it was not its fault but rather the insurance company’s fault; the insurance company says it was not its fault since it get the dates from the employer.

Asked on February 2, 2014 under Insurance Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Whomever got the date wrong would potentially be liable to pay all claims arising out of medical care during the period that should have been covered but was not. Which company made the error is a factual issue, and if the two companies disagree as to who made the error, it may take a lawsuit (e.g. if the patient is looking to recover medical costs) to assign fault and responsibility.


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