Is it illegal for a company to cancel your health insurance prior to being able to switch into COBRA?
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Is it illegal for a company to cancel your health insurance prior to being able to switch into COBRA?
I am a NH resident but work in MA. I recently gave my notice and moved into a different company. It cancelled my health insurance prior to my being able to switch into COBRA. My wife has a heart condition and is now hospitalized with stroke-like symptoms. I did not receive my COBRA packet until a week after I left the previous company and it took a week to reactivate. Meanwhile, my wife is in the hospital due to our insurance not covering the prescription that she needs to survive. My COBRA is active now but this could have been prevented by her having her medicine.
Asked on March 11, 2011 under Employment Labor Law, New Hampshire
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
I am so sorry for your situation. I may be misunderstanding the key point here. Generally speaking an employer terminates insurance coverage for an employee on the last date of employment. Your employer has an obligation to advise you about COBRA benefits and if you qualify (and if they do as well) and to possibly help with the transition. But as far as I know they are not obligated to keep you on their insurance until the COBRA kicks in. In fact, I think that it may be illegal to do so. That would be a form of insurance fraud. Call the Department of Labor and ask as to the rules on COBRA to clarify your situation. I hope that your wife recovers quickly. Good luck.
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