Ensuring Your Rights When Your Former Employer Fails to Cancel Health Insurance
Navigating health insurance post-employment can be complex, especially when employers neglect to fulfill their responsibilities. Here’s an insightful update based on a recent experience that highlights the importance of understanding your rights and options when facing similar situations.
A Challenging Reminder of Employer’s Responsibilities
Several months ago, I received a letter from my former employer indicating that my employer-sponsored health insurance had been terminated approximately six months earlier. The notice also mentioned my eligibility for COBRA benefits starting from that termination date. However, the employer had ceased my employment in 2020 and, despite multiple attempts to contact them, they continued to maintain my insurance coverage without proper authorization.
The Consequences of Uncoordinated Insurance Continuation
Soon after receiving the termination notice, I began receiving notifications from healthcare providers about payments being clawed back. Many of these providers, including community clinics and private practices, encountered issues because their billing systems couldn’t bill Medicaid recipients directly, and these claims were now considered overdue. Notably, some bills from larger hospitals were old enough that they could no longer be billed or processed, leaving providers unpaid—a situation that feels inherently unfair.
Legal Guidance and Steps Taken
To address this, I engaged with a nonprofit healthcare law organization. They confirmed that, under federal law, an employer cannot revoke health insurance coverage retroactively unless in cases of fraud or similar misconduct, which did not apply here. Moreover, they pointed out a clear violation: the employer failed to notify me promptly about COBRA eligibility upon my departure, and they sent a misleading letter six months after my last employment that suggested I could apply—when, in reality, it was already too late.
The legal team now represents me, working to ensure the providers are paid and exploring the possibility of compensation for the inconvenience caused by the employer’s non-compliance.
Key Takeaways for Consumers
- Know Your Rights: Employers are required by law to notify you promptly about COBRA eligibility after employment ends.
- Stay Vigilant: Even if your employer continues coverage beyond your departure, it may be non-compliant, and you should seek legal advice.
- Seek Legal Assistance: Specialized nonprofit legal programs can provide guidance and help enforce your rights.
- Continuity of Care Matters: While Medicaid coverage continued for me, the billing issues highlight the importance of timely notices and proper employer actions.
Final Thoughts
This experience underscores the importance of being proactive
