A woman on the news this morning was reporting that her health insurance company up and cancelled her insurance on her - but unfortunately, they did it retroactively back to January of this year. Now she's left with $30,000 in bills to pay and get this! She was up to date on her payments and was paying every month - she just decided that she had put off going to the doctor for a while and was getting all her tests and exams up to date. Apparently there is already a big lawsuit on behalf of 6,000 other people in California that had their insurance ripped out from under them but I'm not soo sure that does much for the person's credit rating or ability to get other insurance or care...it reminded me of the lady who had her's cancelled because she had filled out the check wrong by a few cents. sammieswife.
Cathy Leardreceived a letter this week informing her that she’d lost her health insurance over 6 cents.
The Garden Grove woman was told she had mailed a check for her COBRA benefits for $575.50 instead of $575.56. COBRA is a federal law that allows former employees to continue their group health insurance for 18 months, but payments for the full amount must be postmarked within a 30-day grace period.
The 6 cent shortfall showed up on her March bill, so she added that amount to her payment. But in a letter dated April 1, Leard learned that her HMO had been canceled retroactively to Jan. 31. To make matters worse, last month her husband, Allen, racked up a $21,000 hospital bill to have his pacemaker replaced.
Leard, 51, immediately called Ceridian, a Florida COBRA administrator, to straighten out the problem. She said she was told that people have been canceled before over a penny.
“That’s the law. It has to be full payment and a timely payment,” said Leard, who lost her job in September as office manager for a plumbing company.
Leard panicked thinking those bills would go uncovered and they would lose the home they’ve owned for 20 years.
Leard went back and looked at the check she wrote and discovered that she had in fact written out the correct amount. She called Ceridian and a supervisor said the computer scanned the check incorrectly, reading her “6″ as a “0.” She was told she would be reinstated.
Ceridian did not respond to a request for comment