Leaving a job and Insurance (Kind of long)

I quit my job on 7/15 with the intention of staying until 7/22 and starting my new job on 8/1. Certain issues arose so my last day ended up being the day I quit so I started my new job on 7/25. I submitted my insurance cancellation papers to my old job making the cancellation date 8/1 and on the same day, I filled out the insurance for the new job. I put the start date for the new insurance as 8/1.

Anyway, on 7/17 at around 8:30pm, I dislocated my shoulder while washing my hair and went to the ER. Well when I checked online, I saw that the big bill (ER visit, medicine, xrays) was paid by the old job's insurance (which it is correct since at that point, I was still going to be at the old job for the week of 7/18 and hadn't filled out any cancellation papers). I got a bill the other day for another xray that was dated 7/18 (which makes sense because it was after midnight when I got the xrays) and it said that my policy was not in effect at the time the service was provided. I went online and it said that policy effective date was until 7/15!

Now, again, as of my visit to the hospital, I was still employed at my old job and still under (and paying!) for that health insurance. Can an employer cancel the insurance policy before receiving cancellation forms? If I wasn't going to be working after the day I quit, wouldn't I still be covered through the rest of the month? And if my new job didn't offer insurance, wouldn't I have been able to get COBRA? My last day was in the middle of a pay period so when I got my final check, they took out the full amount for insurance so I did pay for it even though I apparently was not covered.

I wouldn't put it past these people to just cancel my insurance without my ok or without any notice to me. They are shady a-holes.

Re: Leaving a job and Insurance (Kind of long)

They have to offer you cobra regardless when you leave and you can take COBRA for one month to cover the gap between jobs. Insurance policies are typically canceled on the last day of employment, some go to the last day of the month or pay period. Sounds like your company doesn't. They don't need for you to cancel it either.

If you paid the premium though, they should have extended coverage to the last day that the premium covered. Either that or they should have prorated your premium.

And, the insurance is probably going to adjust the paid bills and retract the money from the provider. Most will, some don't though, but best to resolve it now because when these types of things happen it creates a huge mess and can land you in collections even though you don't deserve to be there.

Re: Leaving a job and Insurance (Kind of long)

Thanks for answering!

I know in the past with previous employees, they never cancelled their insurance until the forms were sent in. I think because of the circumstances of my departure (I left to help start a new firm that will be in competition with them) they got PO'ed and are taking it out on me. If they cancelled it, fine, I guess there isn't much I could do about it if they don't need me to fill anything out, but to take out the full amount of money out of my last check when I wasn't covered it BS!

I guess I'll have to see if they'll retract the payment. If so, i'm royally screwed.

Re: Leaving a job and Insurance (Kind of long)

I know when I left my job I was covered untill the end of the month, I left around the 15th. Since deductions were made from my check on a monthy basis, I was still covered. Did you call the insurance company?

Re: Leaving a job and Insurance (Kind of long)

It may be cheaper to pay for a month of COBRA than to pay for the hospital bills. They HAVE to offer you COBRA

Re: Leaving a job and Insurance (Kind of long)

Call the insurance company. We recently had an issue and I was told policies are paid for the entire month.

Re: Leaving a job and Insurance (Kind of long)

Thanks everyone! I'm going to have to call the insurance company. Fun!