Can I be forced to pay for group health insurance premium just because I did not send in a cancellation notice?

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Can I be forced to pay for group health insurance premium just because I did not send in a cancellation notice?

We are a 2 person company and were unaware a cancellation notice had to be sent; we thought if we could not pay the bill we would simply be cancelled. Now the insurer has sent us to a collection agency for the full month’s premium.

Asked on February 7, 2012 under Bankruptcy Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Not paying a premium is only a legal way to cancel if the agreement with the insurer specifically states that nonpayment results in cancellation. You should double check your agreement with the insurer, but I doubt this is the case; typically, non-payment is simply a breach or violation of the agreement, which would let the insurer take collections or legal action against you. Usually, you can only cancel by sending in the appropriate notice and/or at certain times; again though, to be sure, you need to check the agreement. Whatever it says is enforceable.


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