Question
What is the name of your state? MA
I was involved in a major traffic accident requiring substantial hospital care. Following my release from the hospital, I was informed that my health insurance co went belly up. They didn't pay any of my bills and now the hospital is harrassing me to pay over $68,000! Am I responsible for the cost of my treatment? My employer was current in payments to the insurance company. They declared bankrupcy after I was discharged from the hospital.
What action do I take now?
Answer
If the health plan was an insurance company licensed in your state, there is a state Insurance Guaranty Fund that should eventually cover most of the claim. Contact the State Insurance Department and inquire.
If the plan was NOT an insurance company, or was not licensed in your state, that's a problem. A REAL problem. The employer may have some degree of liability, but that means taking a stance against your employer, and can be damaging to your job prospects. In the meanwhile, ask your employer about the situation as I doubt that you are the only one impacted....
Answer
You should also file a claim with the BK Trustee.
Answer
Devo,
In ADDITION to the above, you should personally get in touch with the District or Regional office of the U.S. Department of Labor. Go to their website for more information. It sounds as if the plan is subject to the ERISA regulations and the DOL has regulatory and enfircement authoruity over such plans. In past cases the DOL has gone to court, had all funds frozen for future distribution by the court and obtained a ruling that all medical care providers were barred from collection activity until resolution of the case.