Title: Navigating Unresolved Employer-Sponsored Health Insurance After Leaving a Job
In today’s post, I want to share an update on a situation I originally encountered a couple of years ago regarding the persistent presence of my former employer’s health insurance plan—despite my departure from the company’s payroll. This experience underscores the importance of understanding your rights and options when dealing with employer-sponsored benefits that don’t seem to be going away.
Background
Since leaving my previous employer in 2020, I expected my health insurance coverage through them to end naturally. However, even after my last paycheck, I discovered that I continued to be enrolled in their employer-sponsored health plan. Despite multiple attempts to resolve this directly with the HR department, my communications went unanswered, and I found myself in a confusing and frustrating situation.
Recent Developments
A few months ago, I received official correspondence from my former employer indicating that my coverage had officially terminated as of a date approximately six months prior—fall 2024. The notice also confirmed my eligibility for COBRA continuation coverage starting from that same date.
Complications Emerge
Soon after, I began receiving notifications from healthcare providers alerting me that payments they had processed were now being rescinded. Many of these providers—ranging from small clinics to large hospitals—were unable to rebill Medicare or Medicaid, as those systems generally cannot process claims from patients with active private insurance or after a claim has been rejected.
Fortunately, I have maintained Medicaid coverage continuously over the years. During the time I was enrolled in the employer-sponsored plan, Medicaid was deemed secondary coverage, which helped mitigate the impact of these billing issues. Still, the situation was far from ideal, and the delays in payment caused unnecessary stress for many providers.
Seeking Legal Guidance
To address this, I reached out to a nonprofit healthcare legal organization. They confirmed that, under federal regulations, an employer cannot retroactively cancel or alter insurance coverage except in very limited circumstances—such as cases of fraud, which did not apply here. They also highlighted that my former employer had failed to notify me promptly about my COBRA rights, a violation of federal law, and had sent me a letter indicating I was eligible for COBRA coverage six months after the fact—by which time, the window to elect COBRA had long passed.
Legal Action and Assurance
Since engaging with the legal organization, they are now representing me to ensure my providers receive appropriate payments and to explore whether I am entitled to compensation for the inconvenience
