HELP! -FAST- INSURANCE LAPSE

jessicav

Hello-

 HELP! PANICKING HELP!

So, to make a long story short, my insurance company (Blue Cross/independent policy) just sent me a letter telling me they cancelled my insurance  (as of Dec 1) because a few of my premium payments had bounced throughout the year. But I had always rectified it. This had happened because my new employer (who paid commisssions late) does not have direct deposit. I would pay my health insurance by check on the phone. I didn't know my paychecks were being held by my new bank 3-5 days.

I sent 2 checks in Jan and one did not clear. Blue Cross said one of those checks applied to Nov.?? Then dropped me.  So, I have a lapse. ???

31 days Dec

31 days Jan

Today is Feb 7.

Over 63 days. 

They denied my request for reinstatment today on the phone. They said I should re-apply but I think thet were just waiting to do this. Can they do this? 

Please what can I do..quick.  SOS!

catbill

Hi jessicav-

I live in Minnesota, and I know that in my state, they can terminate you for non-payment.  I don't know if there is any way to appeal that, but if your state has a risk pool, you may be able to qualify for that.  Typically, you can only qualify for that if you have been denied coverage elsewhere.

Another option for some is Medical Assistance, but you have to meet financial qualifications for that program.  I don't know what other options might be out there, but I'm sure someone will have an idea.  Here's hoping...

lago

I thought they had to give you a certain number of days warning before they could cancel you.

Here is a list of states with high risk pool insurance plans: 
http://www.cobrahealth.com/statehighriskpools.html 

In Illinios you don't have to wait 6 months. I am currenlty on this:
http://www.chip.state.il.us/default.htm  

jessicav

Catbill-

I will check out the risk pool but isn't that very expensive. It's not that I didn't pay, it's that I bounced a few checks but made good on them asap. I work on commission and never know when employer will decide to cut the checks...so frustrating... they say checks are ready and then not...a few times, got a paycheck which wasn't even signed and had to bring it back in...causing havoc!

Lago-

is the risk pool really pricy? Yes, I thought they would give me a certain number of days of warning. How can I find out if they have to do this? I had no idea...really thought I was good. They made this determination to cancel me on Jan 27 and the letter informing me is postmarked Feb 2. But absolutely no warning letter. I would never have allowed this..Yes, a warning letter..never got one...

Thanks ladies...please send info...going to be a long night. 

lago

Jessicav I would call the insurance company if you haven't already and discuss. If they seem not to budge, and I mean even extending your coverage for 1 month so you can find an alternative insurance let them know you will report them.

Yes the risk pool is expensive but it's not more than what we were initially paying for cobra. I think its around $700 a month for a $1000 deductible or me including a prescription plan (BC&BC of IL). Covers 80% in network, 60% out of network. That's a lot cheaper than no insurance at all.

The high risk pool is supposed to be a temporary solution till you find a job or Obama's plan kicks in (2014). Call them. They were full of information and very helpful. You may even be able to discuss the issue with your current insurance.

motherofpatient

Jess, call your state insurance commissioner at your governor's office. Then call your state and federal lawmakers and tell them how your company's pay problems and your bank's holding checks caused this. What bank was it - a biggy piggy like BankAmerica or Citi who got taxpayer bailouts?

kmccraw423

I would contact somone at the Dept of Labor regarding ERISA to find out what your rights are.  I know they can drop you for nonpayment.  I don't know what kind of warning, if any, they need to provide.

My state, Virginia, doesn't offer high risk insurance pools.  I went from COBRA to an individual plan that takes the payment directly out of my bank account - which would not help you if the money isn't in your checking account.

I would also check with your state's insurance commission.

Good luck.

lauri

In additiom to calling the insurance company to protest the cancellation, SEND THEM A LETTER stating that you had made good on bounced checks in the past and had no notification that you could be cancelled without notice. (cc to insurance commissioner would be useful.)  It's always a good idea to have your protests in writing.

jessicav

Motherofpatient- I am going to call them and see what's what. This just can't be right. 

Kmccraw423- I think they have to warn you. I am making calls re ERISA etc....thanks!

Lauri- I will write a letter, carefully worded when I know the law.  This is unbelievable. I have paid insurance all my life and was never ever sick for 42 years. So that's over 20 years of paying for insurance and just when I need it...

lago

Hadley there are several diseases that are uninsurable. Cancer and diabetes are just a couple. This is why the high risk pool insurance was created. The high risk pool insurance is temporary and will go away when (or if) the Obama plan goes into full swing in 2014. Insurance companies then can't deny you coverage. Also because everyone will be required to have insurance premiums for those of us with these diseases won't be quite as high.