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I posted this in the moderated group, but no response. Any advice?
My brother works for a large company that recently dropped health
insurance on his wife and son because he did not re-enroll. In
previous years reenrollment was automatic and if no changes were made
the coverage did not change. The company made a policy change though,
and although he was automatically enrolled, his wife and son were not.
He did not sign anything authorizing them to drop the coverage and has
been trying for a couple of weeks to get them added back but so far to
no avail.
Obviously, in the meantime, if something happened to one of their
health it would be a real mess. Is what the company did legal? Any
advice as to how to apply more pressure to the HR people that are
dragging their feet?
Oh yeah, they say that notices were sent to employee homes notifying
them of the policy change, but he says he never saw one.
TIA.
- Luther
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I posted this in the moderated group, but no response. Any
advice?
My brother works for a large company that recently dropped
health
insurance on his wife and son because he did not re-enroll. In
previous years reenrollment was automatic and if no changes were
made
the coverage did not change. The company made a policy change
though,
and although he was automatically enrolled, his wife and son
were not.
He did not sign anything authorizing them to drop the coverage
and has
been trying for a couple of weeks to get them added back but so
far to
no avail.
Obviously, in the meantime, if something happened to one of
their
health it would be a real mess. Is what the company did legal?
Any
advice as to how to apply more pressure to the HR people that
are
dragging their feet?
Oh yeah, they say that notices were sent to employee homes
notifying
them of the policy change, but he says he never saw one.
If the employment relationship is at-will, meaning the employer
has the right to fire the employee without cause, then the
employer has the right to change the benefits, eliminate benefits,
even reduce salary. The change amounts to an offer to change the
terms of the deal, and the acceptance is the employee staying on.
If the employee doesn't quit, the contract has been changed.
Since your brother now has to privately buy insurance for the
family, what just happened was not different from a pay cut. He
can quit or stay. I don't think there is any way to influence the
company, other than quitting. If they lose people, and can't get
good replacements, they will change the policy as needed. But if
nobody quits, there is no reason for them to change anything.
McGyver
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On 13 Feb 2004 21:13:23 -0800, lcifers@yahoo.com (Luther) wrote:
My brother works for a large company that recently dropped health
insurance on his wife and son because he did not re-enroll. In
previous years reenrollment was automatic and if no changes were made
the coverage did not change. The company made a policy change though,
and although he was automatically enrolled, his wife and son were not.
He did not sign anything authorizing them to drop the coverage and has
been trying for a couple of weeks to get them added back but so far to
no avail.
Obviously, in the meantime, if something happened to one of their
health it would be a real mess. Is what the company did legal? Any
advice as to how to apply more pressure to the HR people that are
dragging their feet?
Oh yeah, they say that notices were sent to employee homes notifying
them of the policy change, but he says he never saw one.
I'm not sure if I understand what happened. Did the company simply
change its automatic enrollment procedure for dependents, or did it
drop coverage for dependents, or did it change the rates the employee
would contribute for dependents?
There appear to be two problems. The first is that your brother's
family is no longer covered by health insurance. He needs to decide
what to do to make sure they're covered while he tries to straighten
out the problem with his employer. The second is whether the company
acted legally in its changes to the health insurance and in its manner
of notifying your brother.
I assume your brother's health insurance is an ERISA plan. Here's a
website that may help you understand some of the rights participants
in ERISA plans have:
http://www.dol.gov/dol/topic/health-plans/participantrights.htm
In particular, your brother is entitled to a copy of the summary plan
description.
http://www.dol.gov/dol/topic/health-plans/planinformation.htm
If he doesn't have one, he should request it of his employer (in
writing). If the plan has changed, he is entitled to a revised SPD or
a summary of material modifications. He is also entitled to a copy of
the plan itself, but that may be harder for him to understand. ERISA
is unfortunately very complicated.
Here are some additional links that may be helpful:
http://www.wpsic.com/news/erisa_def.shtml
http://www.srz.com/pubtemplate.asp?id=250
http://law.freeadvice.com/resources/gov_material/dol_employee_benefit_plans_11_97.htm
Of course, your brother may want to consult with an employee benefits
attorney.
------------------------------
Bob Stock, California Attorney
Nothing I've said should be relied on as legal advice.
------------------------------
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Luther wrote:
I posted this in the moderated group, but no response. Any advice?
My brother works for a large company that recently dropped health
insurance on his wife and son because he did not re-enroll. In
previous years reenrollment was automatic and if no changes were made
the coverage did not change. The company made a policy change though,
and although he was automatically enrolled, his wife and son were not.
He did not sign anything authorizing them to drop the coverage and has
been trying for a couple of weeks to get them added back but so far to
no avail.
Obviously, in the meantime, if something happened to one of their
health it would be a real mess. Is what the company did legal? Any
advice as to how to apply more pressure to the HR people that are
dragging their feet?
Oh yeah, they say that notices were sent to employee homes notifying
them of the policy change, but he says he never saw one.
TIA.
- Luther
Health insurance is not mandatory by law.
Since the main problem seems to be with adding wife and child back on the
plan, all he can do is work it out with the company and carrier.
There are no laws saying a company has to give employees insurance on their
family.
That's purely an incentive as a benefit to the employee.
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Thanks, Bob.
They did not change the benefit plan. His wife and son are eligible
for coverage. The problem is that they changed the reenrollment policy
from "your coverage stays the same if you don't do anything at time of
re-enrollment" to "we drop coverage on your dependents if you don't
re-enroll them". To me the problem lies in the fact that he was not
properly notified. He doesn't have an office or shop that he goes to
everyday. He is a refrigeration service technician for Kroger, so he
goes from store to store, but not doesn't have a central location at
work where memos, etc. might be posted. They say they sent notices in
the mail, but he says he didn't receive them. Where I work, you HAVE
to sign a form authorizing any changes to your benefits elections,
otherwise you keep the last elections you authorized. It seems bizzare
to me that any company would just drop dependents like that. It seems
completely insane.
Thanks for the information.
- Luther
Bob Stock <xxx@x.com> wrote in message news:<51ls20dsjs9hdq4sr45afmfgcfkb66ljic@4ax.com>...
On 13 Feb 2004 21:13:23 -0800, lcifers@yahoo.com (Luther) wrote:
I'm not sure if I understand what happened. Did the company simply
change its automatic enrollment procedure for dependents, or did it
drop coverage for dependents, or did it change the rates the employee
would contribute for dependents?
There appear to be two problems. The first is that your brother's
family is no longer covered by health insurance. He needs to decide
what to do to make sure they're covered while he tries to straighten
out the problem with his employer. The second is whether the company
acted legally in its changes to the health insurance and in its manner
of notifying your brother.
I assume your brother's health insurance is an ERISA plan. Here's a
website that may help you understand some of the rights participants
in ERISA plans have:
http://www.dol.gov/dol/topic/health-plans/participantrights.htm
In particular, your brother is entitled to a copy of the summary plan
description.
http://www.dol.gov/dol/topic/health-plans/planinformation.htm
If he doesn't have one, he should request it of his employer (in
writing). If the plan has changed, he is entitled to a revised SPD or
a summary of material modifications. He is also entitled to a copy of
the plan itself, but that may be harder for him to understand. ERISA
is unfortunately very complicated.
Here are some additional links that may be helpful:
http://www.wpsic.com/news/erisa_def.shtml
http://www.srz.com/pubtemplate.asp?id=250
http://law.freeadvice.com/resources/gov_material/dol_employee_benefit_plans_11_97.htm
Of course, your brother may want to consult with an employee benefits
attorney.
------------------------------
Bob Stock, California Attorney
Nothing I've said should be relied on as legal advice.
------------------------------
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