My friend's employer swapped them to a new health insurance plan and has already started charging them the premiums even though there's no coverage yet. Some kind of "paperwork problems." He's about to get charged for the second nonexistent month of coverage. So that's $600 in the hole in return for... nothing. Is there any way this could possibly be legal? Of course he's already planning to talk to the local Labor department if he doesn't get a refund, but I thought I'd toss it out here too.
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Group health insurance premiums are "pre-paid". Premiums that are taken out of your check in Feb. will pay March premiums, etc. There is usually only a two week (or one payroll cycle) advance payment though. I have seen it go as far as one entire month in advance, but this is somewhat rare. Anything beyond that and there is probably an issue with the enrollment paperwork. If the effective date of the benefits are changed, then he would be entitled to a refund of the premiums already paid for months there was no coverage. The employer usually will have an Insurance Agent that helps with the benefits. Find out who that is and they may be able to help. I hope it works out....
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