Is health insurance bindingon the insurer if it is offered to an employee in a severance package?

Get Legal Help Today

 Secured with SHA-256 Encryption

Is health insurance bindingon the insurer if it is offered to an employee in a severance package?

I lost my job at the end of the year. My office was located in FL but the main office is in MI. I have health care coverage under BCBS of MI. My employer provided me with one month extra coverage through the end of this month. I am planning on having surgery this month and I am concerned about the insurance coming back to me. Is health insurance coverage binding on BCBS if it is part of a severance package, even if I will not be receiving any more pay?

Asked on January 5, 2012 under Insurance Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

It's not so much a question of it being binding on the insurer, since the insurer is not a party to the severance agreement (a party cannot be bound to an agreement to which it is not part) as the fact the agreement is binding on the employer--they need to make sure you get the coverae, if that's what they agreed to, or else potentially be liable for medical costs for that month. The above, said, it would be prudent, before getting the surgery, to check with your former employer that they paid for the month, and to check with your insurer that they actually have you as covered for that month.


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 with SHA-256 Encryption