Navigating a Persistent Insurance Billing Issue: A Personal Update
In a previous discussion, I shared my experience with an employer who failed to cancel my health insurance coverage after my departure from the company. Today, I want to provide an update on that situation and reflect on the steps I’ve taken to resolve it.
Background
Since leaving my previous employer in 2020, I anticipated that my employer-sponsored health insurance would be terminated, and I would no longer be billed for coverage. However, I recently discovered that my coverage remained active despite my absence, and the company had not processed the cancellation. This oversight led to a series of billing complications that I had to address.
Recent Developments
A couple of months ago, I received official correspondence indicating that my insurance had been terminated as of approximately six months prior, in fall 2024. The notice also mentioned my eligibility for COBRA continuation coverage starting from that date. This was a crucial update, as it clarified my coverage status and my options moving forward.
Billing and Provider Concerns
Following this notice, I began receiving communications from various healthcare providers stating that their payments had been retracted because they had billed the insurance company, which, in turn, had reversed the payments. Unfortunately, some of these bills were too old for providers to rebill to Medicaid, which I have maintained continuously for years. While Medicaid serves as my secondary coverage—meaning I am generally protected—I still felt the frustration of providers not receiving their rightful reimbursements.
This situation was particularly disconcerting because providers who work with Medicaid cannot bill Medicaid recipients directly, limiting my ability to resolve the issue personally. Most affected bills involved community and private healthcare providers, including a small bill from a major hospital. Although not critical, it raised concerns about the unpaid services and the potential impact on providers.
Legal Assistance and Resolution
To navigate this complex issue, I reached out to a nonprofit healthcare legal program. Their expertise confirmed that insurance coverage cannot usually be canceled retroactively unless in specific, narrow circumstances such as fraud. They also highlighted that the employer’s failure to notify me promptly about COBRA eligibility was a violation of regulations. The notice I received, stating I was eligible for COBRA six months ago, arrived too late for me to apply retroactively if I had chosen to do so.
The legal organization is now representing my case and actively working to ensure that my providers are paid appropriately. Additionally, they are investigating whether I may be entitled to compensation for the inconvenience caused by the employer
