term of group coverage

dynamite9551

can an employer terminate group coverage because of increased premiums - but without advising employees of when it will be termed? Does this notice have to be in writing. What happens if they continue to deduct the EE portion from the paycheck (after the term of the group contract)but refuses to reimburse? Is there any recourse for this employee, if the family incurs claims (before they realized coverage had been termed?)

thanks!

marc

Wow, this sounds like a snarly mess!!. It is my belief that you can terminate group coverage, but if so, all Cobra rights would kick in with notice provisions effecting timing etc. It is probably some sort of criminal act to deduct premiums from the checks and refuse to reimburse. Misappropriation of funds sounds accurate to me. I do not understand why a company would do this. Perhaps severe financial pressure, but the downside is perhaps even more severe. Plenty of recourse for the EE, including your States Department of Labor (or its equivalent if not called that), the health insurance underwriter, any one of several local attorneys, and perhaps even the local district attorney.

I may be over-reacting, but it sounds like big trouble for the company.

System

I agree with Marc. I wouldn't try this without talking to a lawyer first.
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James Sokolowski
HRhero.com

irenesmsaclaims

If they are terminating the plan, there would be no COBRA rights. No plan, no COBRA. They probably need to see if their plan was subject to ERISA, as there are rules regarding notice of amendment/modification and termination under ERISA.