Can a co. legally cancel an employee's health benefits when they lay him off due to a new health issue?

Question

One weekend while off duty, my friend recently passed out and may have suffered a seizure. This had never happened before. He went to the doctor - the doctor did an EEG ordered and MRI. By the time the young man went in for the MRI the company had laid him off because he had been a driver and the doctor was temporarily asking him not to drive anything including even a forklift until they had test results. When he went in for the MRI he was told that his company had concaelled his benefits - this all in less than 1 week. No notice was given. No official diagnosis has been made and the young man is desperately needing to get to work and to find out if there is anything else wrong with him but he can't due to the cancelled insurance. It is now getting close to the thirty day s without insurance will this cause him further difficulty in obtaining other insurance?

Answer 1

One of the biggest worries for laid off workers is health insurance. Neither unemployment insurance benefits nor programs such as TAA provide health insurance or coverage.

If you lose your job, the federal COBRA law gives you the right to keep your group health insurance for a certain time. However, you must pay the entire insurance premium (usually a monthly cost) yourself, plus up to a two percent administrative fee. Under COBRA, your employer does not pay any part of your premium.

The federal HIPAA law gives some protection when you change from one group health plan to another, or when you change from a group plan to an individual plan. This may be important for you if you change plans after your COBRA benefits have ended.

Paying for health insurance on your own is difficult for most families. In fact, this is one of the biggest challenges for workers who lose their jobs.

Unions may offer health insurance policies to members who are no longer covered under COBRA. Individuals often join associations or membership groups that offer group insurance. You may want to look for policies with very high deductibles that will protect your family in catastrophic situations.

AARP has a lot of information online about health insurance in its Health section.

soure http://www.aarp.org/money/careers/joblos...

Answer 2

You didn't say what country he is in. In the USA, we have cobra benefits available. In the USA, additionally, some companies offer short term disability coverage. Depends where your friend is. And, yes, it is awfully hard to get new coverage when you are in the midst of a diagnosis for something as potentially serious as a seizure. Your friend needs to see an employment/labor lawyer, as soon as possible to help him preserve his rights.

Answer 3

You have a good question.  In most case the company cant just remove the employess health benefitss.  But they can make his life pretty tough with the job when he comes back, and force him to quit.  And they can hire an outside "independent" group to recommend his job be removed due to "downsizing" issues.  The point is that a lot of good people get laid off and loose their jobs because of health issues and the companies not being able to remove health benefits, and the companies are really sneaky about it.  So, that is probably what will happen.  But, he will be allowed to purchase his own insurance until he finds another job.  But this insurance may cost more than he can afford.

Answer 4

If you're in the United States, this is highly unusual and probably illegal.  Everything that is done in regards to insurance benefits has to be put in writing and he has to be given notice.  If it's a large employer and they lay him off they have to give him the option of continuing his health insurance for 18 months by paying for the insurance himself (this is called COBRA).  Also, they may not be able to lay him off at all - he may be protected by the "Family Medical Leave Act".  It sounds like they are discriminating against him based on a health condition so he may be protected by the Americans With Disability Act.  A lot depends on the circumstances, how long he worked for the company and if the company has over 15 employees.  Don't wait!  Look in the phone book and call the labor department for your state.  They'll be able to give you all the info you need and can help your friend for no charge.  Good luck!

Answer 5

i bet your friend was laid off for other reasons.  sounds like a drug induced seizure if you ask me.

Answer 6

Look up COBRA.  You have 6 months (I think) to switch to individual coverage.  They are required by law to allow you to do so. (In the United States)

Answer 7

When they lay the employee off, for ANY reason, there goes the insurance.  That's how it works.  The employer doesn't get the OPTION of keeping the employee's benefits - the insurance company requires the employee to work a minimum number of hours per week, or they flat out aren't eligible for the group benefits.

No notice is required.  The fact that he was terminated, SHOULD have triggered the thought in his head, that since he wasn't employed any more, maybe he didn't have benefits any more.

If he can't drive, he's going to need to find work as a non-driver.  He CAN elect to continue his coverage, WITH NO LAPSE, through COBRA!  Most likely, he HAS that option!  He just has to pay for it himself, while he's job shopping.  

If he has a lapse in coverage more than 63 days, any new insurer can EXCLUDE coverage for the pre-existing condition, even though it hasn't been diagnosed yet!  And, of course, any PRIVATE health insurance company isn't going to insure him AT ALL, until he figures out what is going on.

Answer 8

first of all not sure what state you in but most states have laws about medical leave of absents. But if not they have to offer you a cobra plan which I believe you have up to a year to pick up.  But the best thing I would do is get in touch with the labor board (unless you live in Mississippi which has one but only tells you you have no rights). Also it maybe a good idea to check with a labor Attorney they will know what if any laws been broken.

Answer 9

Hmmm, that's a close call.  If a company lays off an employee, it must cancel that persons health insurance and offer him COBRA insurance.  It sounds like he is in a catch 22 because he should not be operating machinery after having a seizure.  He probably should have been offered another position with the company but some companies do not want to work with employees.  Sorry to say, yes it is legal.

Answer 10

My suggestion is trying to obsord as much information as you can before making up your mind,here is a good one.http://health-insurance.onlinebestoffer....

Answer 11

He has 6 months to elect COBRA coverage....his employer is required by law to send him the paperwork....