Pip1234

Employer Financial Responsibilities

2 posts in this topic

I am currently employed by a firm undergoing acquisition by another firm, this process has been ongoing for 3 months. In January I received notification that I had lost my insurance benefits for the third time, none of my medical bills dating from October 1 to January 1 would be paid by my employer provided insurance. When I questioned the employer I was told it was an error and I had insurance. I was shortly after served with a mail that my Doctor had turned me over to collections for nonpayment of my medical debt, company ownership apologized again and said if I paid my expenses out of pocket I would be reimbursed and I needed to send them the information for what I had paid.

It has been three months and I have not seen or heard from the owner, I was told by our operations manager that the insurance was cancelled in mid December but BC/BS had back dated the cancelation to October 1. I was told I would get my money returned to me for expenses shortly. The money for my insurance premiums had been taken from my payroll checks for those three months, I was further informed that since they were willing to reimburse me for the money I spent out of pocket for medical bills I gained a benefit from those premiums and they did not have to return the premium money. Since this time I also discovered a payroll error and they have acknowledged that I am indeed missing a payroll check, they are waiting for the conclusion of the sale and I was told my money would be to me shortly. I still have no answer as to when I will receive my money.

Can I sue or have ownership found criminally liable for this case?

Thank you for your help.

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This is not a criminal issue - the employer will not be held criminally liable. If you think it is a good idea to do so, you can sue your employer in civil court (small claims if the amount fits) for EITHER the return of the premiums or payment of the bills, but not both. You are owed one or the other. If you are refunded the premiums, you cannot expect there to be any insurance coverage; if he pays your medical bills out of pocket due to the cancelled insurance, you are not out anything that the insurance would have owed you. If you are refunded the premiums, you will still owe the claims payment so it seems to me that payment of the unpaid claims would make more sense.

 

Just FYI, it is not even remotely unusual and it is not at all illegal, for an insurance cancellation to be retroactive several months. I do not have any trouble at all believing that if the insurance was cancelled in December, it would have been backdated to October 1. When an employer does not pay the insurance premiums, the vendor usually does not cancel immediately but will give them a month or two to pay up; but when they give up and cancel, it will be retroactive to the last day paid.

 

You will have to decide for yourself if suing your employer is a good idea or if that would be painting a target on your back when the new firm takes over.

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