How Much Notice to Cancel Employee Plan or Change Benefits?
Our company pays the premium for an employee and his family. His family’s premium will no longer be paid by the company. How much of a notice must be given to the employee before the company no longer pays for his family’s coverage?
Answer
Employers must give employees at least a 30 day notice prior to recession of a health plan and a 60 day notice for material benefit changes. In other words if a plan is cancelled for any reason it's 30 days, if the plan is going to change benefit-wise it's 60 days. The date of the recession triggers a 60 day special enrollment window for the employee to enroll in a Marketplace health plan, but they can use the prior 30 day notice to shop for plans and get the enrollment in place.
Learn more from BCBS, they did a nice job laying out how the law affects this.
Rate and Comment on the Answer
This site uses Akismet to reduce spam. Learn how your comment data is processed.
Answer Rating:
What sort of action can you take against an employer who does not give 30 days notice of cancellation of a policy?
Answer Rating:
Does this 30 day notice count for employers in the State of Wisconsin who have less than 20 employees?
I believe the 30 day notice counts for all employers and insurers. It’s a federal, not state law.
Does this law also pertain to Cobra? I discovered 15 days into a month that my cobra ended the prior month end, even though I was paid to date. Further, I can’t seem to get a refund from ADP…. Even though I was given NO insurance.
COBRA laws are a separate thing. If your COBRA ended you’ll want to look into special enrollment at healthcare.gov ASAP. If you want to just see what happened with COBRA check the department of labor guidelines or try contacting the employer and insurance provider to better understand (you have appeal rights and your employer has responsibilities, but it’s a whole other ball of wax).
My benefits previously auto re-enrolled at my company, but this year, that policy changed. Unfortunately, I’m at a remote site and didn’t pay much attention to the enrollment period. I just found out that my company enrolled me in a different plan but, and here’s the problem, dropped my wife and two young children completely.
Now, their telling me that, since the enrollment period is over, there’s nothing that can be done; they will not provide benefits for my family.
I went back to the emails they sent me; there was absolutely no language indicating loss of benefits for my family was a potential outcome for not re-enrolling.
Did my company have an obligation to inform me of the cancellation? Do I have any recourse?
Thanks.
Brian
You can appeal any insurance company decisions. https://www.healthcare.gov/appeal-insurance-company-decision/appeals/
What can you do if your employer does not give 30 days notice of cancellation of a policy?
You would likely be entitled to another month on their plan, but either way you should probably enroll in special enrollment while you take up the issue with the employer or another entity.
My employer did not inform me that I would not qualify for health coverage after I was offered and agreed to the companies health plan. Is it still the employers responsibility to inform me within 30 days even though the coverage never began?
What other type of entity. Lawyer? Mine also continued to take our money until another employees wife had a heart attack. Thats how we found out and thats when they stopped taking our money. Still hasnt paid the insurance company or the employees back their money that was taken from checks.
Also, today in a meeting when i pushed this subject they fired me.
You may also find assistance with your state’s Insurance Commissioner, you can also try to get help from OSHA (heres a link to some information from OSHA), and you can also call your states General Attorney’s office for advice as well.
I am employed and went to get my medicine Thursday and was told by Kroger that the insurance was terminated. What can I do
Always follow up with the insurer first and then appeal if needed. You have to re-enroll in coverage every year.
Is a company wellness program covered by this law? My company changed the wellness program with 7 days notice before the employee would be solely responsible financially for continuing in the program.
Yes the law does add a lot to wellness programs, so did updated rules. Does it limit the employer in terms of dropping wellness programs on short notice… I’m not sure.
You can check out the law yourself and do a “command find” for “wellness”. Lots of stuff in here: https://www.gpo.gov/fdsys/pkg/BILLS-111hr3590enr/pdf/BILLS-111hr3590enr.pdf
https://obamacarefacts.com/obamacare-health-insurance-rules/
I’m pretty sure there can be additional rules adopted by states too. Sorry this one doesn’t have a simple answer.
I was previously enrolled in a health care plan my employer provided and i paid my portion. It was supposed to be renewed April 2016. I paid my portion as i have always. i was set to terminate my employment with them 4/9/2016. again i paid my portion (deduction out of pay check). I was advised today 4-14-2016 that my benefits were terminated effective April 1, 2016. i was not advised of this by the company but the store where i pick up my perscriptions. what are my rights and who do i get advice from.
If a wife is covered under her husbands health care plan and he passes away. Does the 30 day notice still apply for cancellation
I wasn’t informed of the weekly premium increase that would happen with keeping my newborn son on my employer insurance until I returned to work 3 months after his birth. Does this count for the 60 day notice? Or was I supposed to remember that it would cost 550% more a week?
Is there a specific increase for this? It seems like this would up your insurance to the point where you would then qualify for marketplace coverage for the kid… but I guess this is based on your total household income. Still, sounds like highway robbery.
I wasn’t aware of a mandatory increase of costs during maternity leave, and thus am not aware of a 60 day notice for this.
Maybe try calling the insurer? That is typically my advice when i’m at a loss.
What can we do if our employer cancelled our health insurance, gave us notice 11 days after cancellation and refuses to give us any other information. I was literally informed by the registration lady at the E.R.
Bizarre, you should switch to a marketplace plan immediately, but I think DOL rules say they have to give you more time than this. I’m not sure the exact course of action.
Was in hospital and was going to be released on 4-29 …. Hospital couldn’t get auth. For home care and had me contact my employer to inquire about changes … They told me “oh yeah, we terminated you on 4-27 & your insurance will cancel on 4-30 ?! Can they do this ??
I was laid off on May 30th by my employer with job attached. They dropped my health care plan the day i was laid off. Can they do this without any notice
As a basic rule of thumb, from our understanding, and as noted above, an employer must give at least 30 days notice.
As for the repercussions of not following the rule, or what you can do, i’m not as sure. I would assume a call direct to the insurer would be a good start, as would be clarifying why this happened with Human Resources or the equivalent at the company.
My employer dropped my dental insurance without letting me know, is that legal?
I was given 2 days notice that I was being dropped by husband’s employers health plan. I got a cobra letter 6-28 for coverage ending 7-1. No reason given, no notification. I’ve been to the dr. twice this year, for a cold and and ear infection. How can they drop me without any notification or without giving me a reason? What can I do?
i was terminated at 11:50pm on sunday, and my insurance was cancelled effect monday i was given no written notice that my insurance was being terminated and i was informed that i was no elligable for cobra through my company. Is this legal?
The Mass Bay Transportation Authority cancelled my life, dental and vision policy for what it said was failure to pay a 24.00 administration fee. I have a paystub that states on the bottom “MSG: your ANNUAL FY16 Adm fee of $24.00 was deducted from your paycheck”. Although when I went to HR they said they actually never deducted it.
Hi my name is Stewart I have a on job back injury I was approved for Long term disability Metlife insurance on 08/03/2016…. while waiting and been denial of Workers Compensation insurance to give help or treatment now my employer now after a week of hasserment and retaliation trying to stop my Metlife disability insurance they send a letter FedEx dropping my health benefits insurance no warning or 14 day notice
Yes my workers compensation AIG insurance
I’m on L&I and my employer canceled my health insurance without notice
I’m on L&I and my employer canceled my health insurance without notice, can they do that?
My boss cancel medical inshurance never didn’t give nobody note.This was benefit what he took safe money foe hym.He liar whit evrything over time ,holidays, vacations….
If an employer with 6 full time employees offers health insurance coverage and they decide to not renew the plan at open enrollment is there a required time frame of notice they have to give the employees.
What is the Federal Statue that states a 30 day or 60 notice is required.
I was terminated and my position was eliminated as the City Administrator for the City of Freeman SD.
Date of termination September 7th, 2016. I have received no notice about cobra or insurance options. The City did pay my part of the insurance coverage and I paid for the family. I was surprised to learn in less than 10 days I will no coverage at all.
Lost and Confused.
what is considered a material change?
I think a basic definition is “a change to the terms of a contract” (in this case in an employer health plan contract).
Here is a general definition: http://legal-dictionary.thefreedictionary.com/Material+Changes
My husband was diagnosed with Small Cell Cancer of the Upper Right Lung the Liver Stage IV after being hit by a fork-lift while put his dock plate down on a dock at a delivery in Indy. The ER Doctor came in and said he had good news and bad news. You have no internal bleeding and no broken bones but you have Cancer. His oncologist said we needed to start treatment ASAP and this would weaken him so we requested short term disability which would pay the insurance premiums only to be told that since he was off Jan., and Feb., of this year for Roter Cuff Surgery and therapy that you can’t be on short term disability twice in a twelve month period. So, we asked if we could pay the premiums and the answer was NO. According t the Company he is not fired and is still a employee. Then we were notified Oct., 4th 2016 by phone (not in writing) that they have canceled the insurance effective September 30, 2016. That date would make such that my husband’s first treatment session of three consecutive days not covered after verbally okaying them to the Oncologist personnel and myself.
Please, what recourse do I have to get my husband’s next treatment session covered and do I have a case against the Company? The treatment is my first concern above all and the company issue is secondary at this point. Help Please…
That is a very sad story. Your best bet is to appeal. If you have no income you can look into Medicaid, which can be retroactive, and you can look into special enrollment for future coverage.
I’m not sure beyond that. But this sort of thing is best handled with appeals and vigilance. One should never just take the insurer or employers word and give up. You can often get the just outcome by putting in effort and following the correct channels. This should set you on the right track: http://www.hhs.gov/healthcare/about-the-law/cancellations-and-appeals/appealing-health-plan-decisions/index.html
So if my employer cancels either knowingly or unknowingly my wife’s coverage under my policy without notifying us at all, is that legal or do we have a violation of the law?
I got insurance through my employer, and the rate was based Bi-weekly not monthly. Feel like the insurance is way to high for me and the family to afford. Employer says I can not change to lower insurance plan and I may not be able to cancel the insurance either. Does this sound correct sure sound fishing to me.
Can husbands Insurance terminate ex wife without notification when divorce is final?
Not sure. Once a person isn’t in a tax family then they shouldn’t be on the same coverage. That said, there are general rules for terminating coverage without notice… i’m just not sure about specifics in this case.
I as luck would have it work in a Michigan speciality office with less than 20 employees. When I was hired I was told I would have insurance benefits. At time of interview they knew I was separated from spouse. Now 11 mos. later, I was asked if I was still married. And, if I was covered on spouses policy. I advised yes to both and asked why, to which I was told they needed a letter saying I was covered on that policy. Within a day or two, nothing was said to me. Later that night I sent a text to insurance person at work. I asked what date does/did my policy cancel because now spouses HR wanted to know. She replied have the call me on my cell. I thought that was very odd (just tell me the date). Come to find out they cancelled my policy over 2 weeks before even asking if I had coverage and to this day still have not advised me. Is this legal?
As luck would have it, I work in a Michigan medical office with less than 20 employees. When I was hired I was told I would have insurance benefits. At time of interview they knew I was separated from spouse. Now 11 mos. later, I was asked if I was still married. And, if I was covered on spouses policy. I advised yes to both and asked why, to which I was told they needed a letter saying I was covered on that policy.
Within a day or two, nothing was said to me. Later that night I sent a text to insurance person at work. I asked what date does/did my policy cancel because now spouses HR wanted to know. She replied have them call me on my cell tomorrow. I thought that was very odd (just tell me the date).
Come to find out they cancelled my policy over 2 weeks before even asking if I had coverage and to this day still have not advised me.
Is this legal?
I am not sure on the specifics and legalities, but it seems incorrect. I believe there is a mandatory period of notice in general, but the specifics are eluding me.
My union health insurance was cancelled without any notice. I knew benifits were extended for a long period of time after a job ends, but didn’t know how long. I called and was told they had already been cancelled for almost 2 months. They said it was my responsibility to let them know when my job ended. Is that legal? Don’t they still legally, have to give me warning?
Our company is bringing in a new management team to run the company, we was told it take effect December 1,2016. And that our current insurance plans will change to what they feel is equally compare to what we currently have, and we haven’t even had an opportunity to look at the plans they offer. Is this fair or legal? We don’t even know how much the plans are going to cost us per payroll, some people are on budgets , and we can’t even adjust. If we don’t sign up then we will not have insurance come January 1st. So tell me can they really do it like this.
Hi there, this information was truly helpful!!
What are my options if my employer cancels my insurance?
My employer sent out an email stating that in order to save costs for them they are switching to a different insurance that will be more affordable to both the company and the employees. We have 3 days to decide to take it with no premiums in place. We have stressed to them that this is illegal but they say that their attorneys claim it’s 100% legal. To me it seems to fall under this law. Am I right?
What constitutes a notice. I was laid-off and had insurance payments taken out of 2 checks after being laid-off. I have not had any actual notice
I have been paying for health insurance since I started working for my company. The end of November we found out that out insurance was cancelled in October due to non payment by the employer. What can I do?
Our insurance was cancelled by our employer 8 months ago and we were never notified. We had our yearly check ups and received a letter later that exposed the fact that we no longer had insurance. I don’t think we can even cobra. Do you have any information that would be helpful in this senerio? Thanks
Sir my father and mother were paid tn govt health insurance monthly. My father was retired staff. My mother is now working in tn govt. We pay both insurances. So how to cancel or stop my father’s policy. Help me sir
Ph. 9943124282
My husband was terminated due to an illness. He went in the hospital on
the 12th, the employer canceled his insurance on the 11th. All the premiums were paid up to date. They didn’t tell him that he was canceled.
Is this legal?
I worked for a company in Minnesota that told me about 5 days prior to the last day of my 2 week notice that my medical benefits would term on my last day of employement. I immediately sent an email back to HR asking if I worked one day on the next pay period if I would be fully charged for benefits I could not use. I never received a response. (I travel for work) My last day technically would have been that Friday, but I offered to work Monday if they needed. I just got my final paycheck and they used my PTO and all but 64 cents of what I worked that Monday to pay for benefits I could not use. Is this legal? If not, what actions can I take? I am getting no where with their HR department. They said I should have asked questions….I did. They never responded. Please help! This is morally not right.
My husband and I have health care through his employer now they send us a letter saying my husband did not work 780 hours in a 6 month time period so we will be cut off. It’s the law through the affordable care act Is this true?
If you don’t qualify for full time status, then your employer can cancel your coverage at the end of the calendar year in general. There are complex rules related to measurement periods to consider. If the coverage ended at the end of the year, then this could be correct. If they tried to cancel your policy mid-year, then it could be a more complex problem. From the date of this comment it looks like it occurred mid-year.
I am a 62 yr old RN, who has responsibly worked 40 years, with the last 6 yr @ current employer (full time and full medical benefits). I have a number of documented disabilities, and persisted to work with great challenges with employer, but getting some relief with reasonable accommodations.
My physicians ordered me to stop working and completed physician disability forms on 4/5/2017 by neurologist and 4/25/2017 by primary physician. The last day I worked was 4/4/2017. I was on a 3 week medical leave 4/5 – 4/26, with intention to return to work 4/27/2017, which I did not. I have not resigned. I have not been asked yet to turn in my badge. I am still employed, and sick hours used on my time card.
I have NOT received ANY written notice from my employer. I spoke with HR disability specialist who has TOLD me mixed info. At the beginning of May, the HR rep told me with Affordable Care Act, that I could continue paying current premiums (that I have paid while employed) directly to my medical insurance carrier until 12/2017. On 5/22/2017, I spoke with same HR rep, who stated she was now unsure, and that my medical coverage may end 5/31/2017. She repeated her comment, that my case was unique. Again, I stated that I needed confirmation in writing.
Your comment above stated “30 days notice for any reason, but did not specify if verbal or written. Does it need to be in writing, or verbal? Does an employer need to give me of the status of my medical coverage / job status, in my case when I am in the process of full permanent disability?
I need to know. My health care coverage, and budget to sustain living expenses depend on this.
Thank you!
If you need a very specific answer, you might want to try the department of labor. To answer the question generally: In general there is supposed to be a written notice 60 days in advance changes and 30 days for cancellation. See the following links for some alternative reading material. Those are the basic rules, things can get a little complicated when it comes to specific rules employer and employees have to follow in specific situations.
http://hrdailyadvisor.blr.com/2015/09/10/ask-the-expert-notice-of-health-insurance-cancelation-and-termination/
https://www.zanebenefits.com/blog/bid/310976/the-aca-s-60-day-notice-of-material-modification
http://work.chron.com/can-employer-cancel-health-care-benefits-telling-me-25295.html
My employer dropped the insurance company that I have been using for a year or two ,they gave me No notice now I have no insurance,is there any recourse
Generally they can’t just drop your insurance like that. You should start by talking to your employer and the insurer. You can move onto filing an appeal. Generally there are rules about giving notice and waiting until the next enrollment period. However, rules for employer can be a little complicated so it helps to find out more about the specifics.
Does this include when one quits a job? My daughter only got 2wk. Notice. What can she do….
If you quit your job or retire, you’ll get a Special Enrollment Period allowing you no less than 60 days to enroll in the Marketplace before your employer plan ends.
Please note that if you lose your coverage, for any other reason other than non-payment, fraud, or misrepresentation, you are typically granted a 120 day special enrollment period. This period typically starts 60 days before you lose coverage and lasts 60 days after.
https://obamacarefacts.com/questions/if-i-quit-my-job-do-i-qualify-for-special-enrollment/
TIP: With Trump’s rule changes special enrollment options have become a little more limited, so I would call heatlhcare.gov immediately to coordinate coverage.
My wife is covered under my Cobra. My former employer changed insurers and gave us 3 days to accept the new coverage or not. It is my understanding that employers are required to provide at least 30 days notice of a significant change in coverage. Is that true?
I am almost positive this is the case. I’ve never heard of a 3 day limit. You should check the DOL (department of labor) website.
My employer cancelled my health care insurance they said it was cancelled on 6 12 17 they did not tell me until 7 3 17 I had medical services done between those dates. they sent me no notice before they canceled me. Can they do that. I am disabled and live in St Louis Missouri
You can appeal this, although it could be complicated. I would probably start by calling the insurer, but I’m not sure who the appeal would ultimately go to, the insurer or the employer. You’ll likely need to contact both.
My employer is based out of Texas but I work in Boston. They jut gave me 2 weeks notice that my insurance will end. However the policy has been cancelled and backdated to May first due to my employer not paying the premiums even though they deduct the $$ from my check.
My employer notified us on oct 31st that effective Nov 1st they we’re changing providers . Also till this date when I call the new insurance they state my benefits are not visible and my employer has not provided us with any coverage details. Is this legal?
Our open enrollment is in August; our plan year begins on September 1. On November 15 we were notified that our traditional benefits plan will be changed to a high deductible plan a of January 1 (45 day notice). Does this violate the 60 day rule on a material benefits change notice? And, can an employer change the health insurance after open enrollment (and during the plan year)? Additionally, the plan is only being changed for non-union employees.
I don’t know the answer to those questions, but I will leave your comment here in case someone else has insight.
My employment ended in Massachusetts on May 3rd and they verbally stated that I would have medical coverage for two weeks ending on May 17th. I have just discovered that they terminated my benefits on May 4th. Is this permissible? Thank you for your help.
So I would have to double check specific rules, it doesn’t sound right, but employer / employee rights are complex… still, rules aside, I think we can all agree an employer shouldn’t say one thing and do another.
That said, if you just lost coverage you should really be looking into special enrollment in the marketplace if you don’t have access to COBRA.
https://obamacarefacts.com/special-enrollment-period/
my employer insurance terminated 9/1/2019 at 12:01 am. and i went to the emergency room on 9/1/2019 around 1 p.m. I received a letter dated august 28th 2019 that my insurance would terminate 9/1/2019 at 12:01 a.m.I never received the letter until 9/4/2019.
My question is should i have been given a 30 day notice my insurance was terminating and can i file my insurance with the hospital anyway?
Yes, you should have been given at least 30 day notice. And thus you can almost certainly appeal this decision successfully. To win an appeal you must act immediately. I would contact both the insurer and employer, likely in that order.
Here is some information on appeals https://www.healthcare.gov/appeal-insurance-company-decision/appeals/
I have read in multiple places that the employer or insurance company must give a 30 day notice of cancellation of a policy, but no details as to HOW the information must be sent or specific wording, etc. I was recently dropped from my husband’s employer plan after they didn’t receive proof I’m his wife (I’d been on the policy for 2 years already). Apparently, they sent a letter to our home indicating that they needed this within 45 days of enrollment or I’d be dropped. Not only was enrollment back in 2018, but we never received the piece of mail indicated. Is it legal for them to then drop me and for NO ONE (not the insurance co, the employer or the benefits administrator) to contact us to tell us it was going to happen/had happened? I found out by chance when I went to make a covid-related dr. appointment and discovered my insurance was no longer active!!
If you didn’t get any sort of notification, then you for sure have basis to appeal this decision. https://obamacarefacts.com/health-insurance-appeal-rights-under-obamacare/
I have a question: Can an employer being a public housing authority in Minnesota increase your deduction on your health insurance plan, without giving prior notice?
And, if they cannot do so legally, what recourse does the employee have?
I resigned from my position in February of 2022. I worked my contracted during. I was told in an in-person conversation that my pay and benefits would last through August. When I started having claims denied I emailed my employer. It was at that time, in late August, I was told my benefits had been terminated as of July 31. All of my insurance cards and only portal information states my coverage period was Sept. 1, 2021 to August 31, 2022. I never received any notice of cancellation. What can I do?
You can always appeal any decision. This includes cancellation of coverage. Generally, if you get canceled for not paying this isn’t protected, also employers have extra protections. Still, it seems you would be in the right on this one. You can start by contacting the insurer and employer, likely talking to HR first and letting them know you plan to appeal the decision. You can also consider getting the help of a legal professional depending on how things go, but generally the first step is talking to the employer.