If an employer provides health insurance coverage for its employees and then that insurance company goes out?
March 21, 2010 5:20 am Insurance
Addicted to Yahoo! Answers asked:
of business and has no more money to pay claims and the health care providers are turning to the employees to pay outstanding medical bill claims, what alternatives does the employee have? Are there any remedies against the employer?
Aromatherapy Benefits - relieve stress and improve health
of business and has no more money to pay claims and the health care providers are turning to the employees to pay outstanding medical bill claims, what alternatives does the employee have? Are there any remedies against the employer?
Aromatherapy Benefits - relieve stress and improve health
Worldly25 :
Date: March 22, 2010 @ 5:31 pm
No. The employer and policy holders are treated as creditors by the bankruptcy court.
SmartA$$ :
Date: March 25, 2010 @ 9:29 am
The employer has done nothing wrong and therefore there is no legal action to take against the employer. The employee is responsible for their own medical bills.
I suggest you talk to your employer about filling a class action lawsuit on behalf of all the employees against the insurance company. At least that gets you in line to get paid but when the court declares the company bankrupt and there’s no money left, somebody is not going to be paid. Filling a lawsuit gets you in line in front of any share holders of the company, but it still doesn’t guarantee payment.
AJ :
Date: March 26, 2010 @ 11:01 am
As an employee, you really don’t have much recourse. You can’t go against your employer. They just made available the insurance for you and helped cover some of your premiums.
And remember when you go to the doctor’s office, regardless of insurance, you are responsible for the entire amount of the bill. So when the ins company can’t pay, the doctors’ will be coming after you to pay them.
MTR :
Date: March 27, 2010 @ 9:40 am
In some states, the insurance division will make arrangements for otherwise uninsured claims to be paid through the insurance Guaranty Association.
contact your local Insurance Division, and talk to them, to make sure they monitor health insurance companies. Even if they don’t, they should be able to give you a good answer or point you in the right direction.