Question
I live in Illinois. I was recently fired from my job. It was not for gross misconduct, it was for reasons I'm still not sure of. I was always told I did a wonderful job by my co-workers and my bosses. I even just got a raise not to long ago. Nevertheless, I was fired. I lost my job on 06-21-06. My health insurance, I found out today was cancelled on the 22nd. Since the 22nd to today the 28th, my wife had to have lab work and other procedures done. Since this happened after they cancelled my insurance, I'm pretty sure my claims will be denied. The problem is I never said I wanted my insurance cancelled. Just yesterday I received certified mail asking me if I would like to continue my coverage from the former employer. Under COBRA isn't what they did illegal? Don't I have the right to have those medical expenses covered? The company has more than 25 employees. What should I do?What is the name of your state?
Answer
I live in Illinois. I was recently fired from my job. It was not for gross misconduct, it was for reasons I'm still not sure of. I was always told I did a wonderful job by my co-workers and my bosses. I even just got a raise not to long ago. Nevertheless, I was fired. I lost my job on 06-21-06. My health insurance, I found out today was cancelled on the 22nd. Since the 22nd to today the 28th, my wife had to have lab work and other procedures done. Since this happened after they cancelled my insurance, I'm pretty sure my claims will be denied. The problem is I never said I wanted my insurance cancelled. Just yesterday I received certified mail asking me if I would like to continue my coverage from the former employer. Under COBRA isn't what they did illegal? Don't I have the right to have those medical expenses covered? The company has more than 25 employees. What should I do?What is the name of your state?
When you accept the COBRA coverage (and pay for it), it will be retroactive to the day you lost your job.
Answer
No, what they did is not even remotely illegal. Nowhere is it written that they have to leave your insurance active for the entire time you have to submit your first COBRA payment, allowing you plenty of time to run up expenses that you may not even pay for. (I'm not accusing you specifically, but believe me there are plenty of people who would take advantage of the opportunity and then never submit their COBRA payments? Why should they? By that time they'd already gotten the medical treatment they wanted.)
The way it works is, your insurance is termed effective either the first day after your termination or the last day of the month in which you were termed, whichever is called for by the insurance contract. The employer has up to 44 days to send you the COBRA information. Once you receive it, you have 60 days to elect coverage. From the day you elect coverage, you have 45 days to submit your first payment. ONLY after your check is in your employer's hands, are they required to reinstate your coverage. BUT, it must be reinstated retroactively to the day the insurance was termed. Any claims incurred in the meantime can then be submitted and/or resubmitted for payment.
Since adding it all together it could be as long as 149 days after your termination before your COBRA payment is received, the law does not require your employer to keep your coverage active all that time. As I said, for some people that would be the equivalent of giving them nearly four months free health insurance. You may be honest, but a lot of people aren't.