Cobra coverage cancelled because employer didn't pay. HELP ME PLEASE!

[Guest PaulS]

I left me employer in February and have been covered by Cobra insurance. All of my payments have been made on time. Recently when I went to get a prescription I was told that my coverage has been cancelled. After many frustrating calls to my employer and the insurance company, I was told that the policy was cancelled because of non-payment. The entire plan was cancelled because the employer did not make his payments. Furthermore they informed me that it was cancelled 2 moths ago. My former employer is downplaying this as a mistake that will be taken care of. (That was several days ago and they have not returned any phone calls)

This is a HUGE inconvience because my family has been to the doctor many times and my wife is having a difficult pregnancy requiring many prescriptions. I have to take on the finacnial burnden until this is resolved.

Do I have any rights or recorse with this? How can they contimue to collect my premiums but not provide any coverage?

Please help me!!!!!

[ERISAatty]

PaulS,

From your message, it is difficult to know exactly what happened, in terms of who is legally responsible for what, but I recommend that you telephone the Employee Benefits Security Administration (EBSA) at this toll-free number: 1.866.444.3272. If your policy was cancelled, and won't be reinstated, you should be reimbursed for the excess premiums. If the Employer's ENTIRE health plan was cancelled, you will not be able to continue with COBRA, but may have other state rights to get an individual policy.

The EBSA should be able to provide some helpful information.

Another option, if the situation is not promptly resolved, and if you feel that the employer has mishandeled your payments, is to hire an Employee Benefits attorney in your area. The attorney can review all the facts, and can send a letter to your employer and or the insurer demanding that they rectify the situation.

Good luck.