Can an employer cancel form insurance while you're still surrounded by the hospital?
A friend of mine was in a catastrophic catastrophe (not at fault) and has been hospitalized for 3 weeks. The company he works for know that he is injured and believes he MAY not be able to work again. The company has told his family connections that they will be terminating his insurance after April.
Is this legal? This seem to be discriminatory to me, but I'm not sure of the law.
Answers:
depends on the state and the contract.
Your friend should see a advocate.
in America, insurance is regulated by the individual states, so you need a state specific answer.
start beside google, read a bit, and then ask a better question.
The employer is obligated to follow the benefit rules of the plan.
If your friend becomes ineligible below the rules of the plan, then they have to abandon his coverage.
So the question is not whether, in nonspecific, a person's health insurance can be terminated while they are hospitalized. (It can.)
The question is why specifically your friend's insurance is one terminated. Are they terminating his job? Are they stating that he's no longer eligible because he's not actively working the minimum number of required hours per week? These could be valid reason for terminating a person's group health insurance benefits IF those are the eligibility requirements underneath the plan.
If the injury was not work related and your friend have not been at work for 3 weeks/will not be returning any time soon, its possible that your friend's coverage could be canceled. He should speak with his human resources representative, if he's competent to do so. (If he's unable to communicate, whomever is his legal representative should do so for him.)
He or his legally recognized representative could also check with his state's Department of Labor, if they feel that he is individual wrongfully terminated. He should also find out whether he's protected under the Family Medical Leave Act (small employers are exempt from that law), and whether or not he will be eligible for COBRA continuation coverage. They could also contact an attorney to assist them. Source(s): 15 years working for medical providers and form insurance companies
if your friend doesn't work at the business ...
the employer does not enjoy to continue to pay for his insurance.
your friend should be offered COBRA ... (where he can extend his benefits)
Not exactly true.
If they've fired him for not mortal at work, then they CANNOT keep him on their insurance - but they WILL extend him COBRA coverage. His wife will have to be right on that, to keep the coverage.
Related Questions:
Is this legal? This seem to be discriminatory to me, but I'm not sure of the law.
Answers:
depends on the state and the contract.
Your friend should see a advocate.
in America, insurance is regulated by the individual states, so you need a state specific answer.
start beside google, read a bit, and then ask a better question.
The employer is obligated to follow the benefit rules of the plan.
If your friend becomes ineligible below the rules of the plan, then they have to abandon his coverage.
So the question is not whether, in nonspecific, a person's health insurance can be terminated while they are hospitalized. (It can.)
The question is why specifically your friend's insurance is one terminated. Are they terminating his job? Are they stating that he's no longer eligible because he's not actively working the minimum number of required hours per week? These could be valid reason for terminating a person's group health insurance benefits IF those are the eligibility requirements underneath the plan.
If the injury was not work related and your friend have not been at work for 3 weeks/will not be returning any time soon, its possible that your friend's coverage could be canceled. He should speak with his human resources representative, if he's competent to do so. (If he's unable to communicate, whomever is his legal representative should do so for him.)
He or his legally recognized representative could also check with his state's Department of Labor, if they feel that he is individual wrongfully terminated. He should also find out whether he's protected under the Family Medical Leave Act (small employers are exempt from that law), and whether or not he will be eligible for COBRA continuation coverage. They could also contact an attorney to assist them. Source(s): 15 years working for medical providers and form insurance companies
if your friend doesn't work at the business ...
the employer does not enjoy to continue to pay for his insurance.
your friend should be offered COBRA ... (where he can extend his benefits)
Not exactly true.
If they've fired him for not mortal at work, then they CANNOT keep him on their insurance - but they WILL extend him COBRA coverage. His wife will have to be right on that, to keep the coverage.
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