What to do about cancelled health insurance if a deduction from a paycheck was still made?

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What to do about cancelled health insurance if a deduction from a paycheck was still made?

Last month our employer announced that they may be dropping our current health insurance but wasn’t positive they were. We were also told that if it was in fact canceled, they would find another way and we would not be going without health insurance. On a conference call around the first week of this month, some employees brought up the fact that their insurance was canceled on the 1st. and we were told that even though it showed up as canceled on the insurance web site as canceled, we were in fact covered and premiums would still be deducted. On my last check for the 18th I had the premium deducted. On the 20th I had an emergency gall bladder removed. I was only then informed that my insurance was canceled as of the 1st. Do they have to notify before being canceled?

Asked on October 25, 2012 under Employment Labor Law, Ohio

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Oh absolutely the insurance company and your employer must notify before cancellation and further, you are entitled to possible COBRA coverage in case of cancellation. You need to immediately file a complaint with the insurance department of your state and inform the insurance company and your employer in writing that since a premium deduction was taken and no notice was provided, you are required to be covered under the insurance coverage or risk a law suit for insurance bad faith and the fraud by your employer.


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