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.
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
Over 483 Local Jobs Now Hiring In Your Area. $18-$87/Hr - Apply Today!
Shop Online or Sign Up To Sell AVON & Earn Fast Cash Today!
(89) Local Jobs Paying $17-$88 An Hour- Available Today. Apply Now
Warehouse Positions and Training. Apply Online and Begin Your Career!
Other Career Questions
Do most mechanical engineering jobs offer job security?
What is your current job? Why did you choose this job? What do you enjoy about your job? What do you dislike about your job? What would be your perfect job? Would you rather have this j...
Where are the jobs? Is productivity and globalization creating a permanent “recession” of jobs? My main issue is I am doing a paper for school and have no idea where to begin. I was hoping suggestions...
Content is not owned or controlled by Monster. Any content concerns should be addressed with Yahoo!
Yahoo! Does not evaluate or guarantee the accuracy of any Yahoo! Answers content. Yahoo! Disclaimer.
Best-Paying Work-from-Home Jobs
It’s easier than ever to work from home. Of course, not every job is a mobile job, and some companies aren’t interested in having their employees work from home.
2013 Marketing Jobs Outlook
The US may be facing another year of anemic hiring overall, but that won't be the case in the high-orbit world of multichannel, digital media marketing.
2013 Engineering Jobs Outlook
Engineers will find job opportunities in select disciplines in 2013, with candidates who are all-around, client-oriented businesspeople in demand.
Best-Paying Jobs by Major
What could you earn with a particular four-year degree? Find out by checking out this list of the top-paying jobs for 20 of the most common majors.
Eight High-Paying, Secure Jobs
Want to earn a good salary and enjoy a measure of job security as well? Check out these well-paying jobs on tap for fast growth in the coming years.