Legal Question in Insurance Law in New York

Reimbursement for Cancellation

I recently cancelled my health insurance with a company that my employer provided. The date of termination was January 28. I heard that insurance companies are required by law to reimburse you for that last month of service (even if I were to cancel of the 31st of the month). The company I work for is telling me that their contract with their insurance provider states that the insurance company is not required to reimburse me for this month of service. The company is also saying that they never heard this law applied with any company. I thought it was standard.

I am an independant contractor for this company, and I pay for my own health insurance (the company does not pay it for me). Perhaps this company's policy may be to not reimburse (and they keep the money), but they did not say that at all.

What is the law on this matter? Am I entitled to reimbursement? I would like to give them proof of this as well. If I am correct, then did this company create an illegal contract?

Thank you in advance for your help and time in this matter.


Asked on 1/31/02, 12:01 pm

2 Answers from Attorneys
Robert R. Groezinger GroezingerLaw P.C.

Re: Reimbursement for Cancellation

Time in use is time to pay ... as long as it is in force and effect, you pay.

Good Luck

RRG

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Answered on 1/31/02, 3:58 pm
Kenneth J. Ashman Ashman Law Offices, LLC

Re: Reimbursement for Cancellation

Echoing somewhat the response of Mr. Groezinger, I know of no law that entitles you to automatic reimbursement for the last month of health insurance that you utilized. Of course, I do not know all laws, and I am no expert in the health insurance field, but my question is more fundamental: Why do you think you would be entitled (and why would a law be passed) that mandated health insurance companies to give back a month's worth of premium for a time period while you were covered for insurance?

Your question did not indicated that you had prepaid for a month, which, if that were the case, it would seem proper that you would get the return of any unused premium, but I see no rational reason why a law would be passed providing you with a free month.

-- Kenneth J. Ashman; [email protected]; www.lawyers.com/alo

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Answered on 2/01/02, 3:17 pm


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