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A former employer forgot to cancel health insurance...?

My friend quit her job and the former employer forgot to cancel her health insurance. She is still using it. I think she may have to pay it back. She says it is their fault for not cancelling it and doesn't think she will have to reimburse them. Who is right and what can happen?

Asked By: Nicky G - 12/26/2007
Best Answer - Chosen by Asker
She won't have to pay back her company. She'll just be liable for all the bills to her doctors once the insurance company retracts payments for her claims... More
Answered By: sarah314 - 12/26/2007
Additional Answers (6)
She may wind up having to pay back a lot of money. When she quit, the employer undoubtedly stopped paying her premiums and thus her coverage lapsed. Sometimes, there are delays at the insurer in updating that termination data. But they'll catch up to her.
Answered By: newjerseyguy - 12/26/2007
 
She is wrong, and will eventually get charged with insurance fraud.
Answered By: twister431 - 12/26/2007
 
There could be a couple things, I work for an insurance company and her company policy may not renew yet. They may be unable to remove her for almost a year. If they truly forgot to remove her she will have to reimburse the company for all costs, yearly premium as well as treatment costs. She could be sued.
Answered By: allenalana - 12/26/2007
 
Technically, if her employer is paying for it, it's legitimate insurance and the insurance company shouldn't be able to make a claim against her. I don't think it would be considered fraud, but I'm not an attorney. She should be concerned about the possibility of her former employer trying to get her to pay for the... More
Answered By: bertha b - 12/26/2007
 
You are. They'll eventually cancel it retroactively back to either the day after termination, or the last day of the month in which she worked - then they'll go after her for reimbursement. Garnish her wages, if they have to.
Source(s):
Answered By: mbrcatz17 - 12/26/2007
 
Most likely like indicated it was just a mishap where the employer neglected to terminate that employees coverage. Or they could have submitted to insurance carrier, but somehow never got processed on the carriers end. Regardless, when the employer notices they are paying the premium for a terminated employee, they... More
Answered By: DP_CA_AGENT - 12/26/2007
 
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