A company is temporarily shut down and did not pay employees’ insurance premiums. Can the employees pay the premium to continue coverage?
Employees should first contact their employer to determine the employer’s intent to pay the premium. Employees may also wish to contact the insurance company to determine how long the payment has been in arrears, if the insurance company has provided a grace period for late payment, and how long the employer has been given to make the payment. Employees can also contact their state insurance commissioner regarding any rights they may have under state law to pay premiums directly to the insurance company or convert the group health coverage to an individual policy. If premiums are in arrears or coverage has been cancelled as a result of the employer’s failure to make the premium payment, employees may contact one of the Employee Benefit Security Administration’s (EBSA) benefits advisors at 1-866-444-EBSA (3272) or contact EBSA by email at askebsa@dol.gov. Not all of the employment laws referenced apply to all employers or all employees, particularly state and local government agencies. For information on whether a particular employer or employee is covered by a law, please use the links provided for more detailed information. This information is not intended for federal agencies or federal employees -- they should contact the U.S. Office of Personnel Management (OPM) for guidance.
Note: As an overall matter, employers should be guided in their relationship with their employees not only by federal employment law, but by their own employee handbooks, manuals, and contracts (including bargaining agreements), and by any applicable state or local laws.
Last Reviewed: 10/05/2009
Related Questions:
- If a worksite closes due to illness, how does an employee locate the plan administrator, or file a claim for benefits or obtain other documents, such as certificates of prior coverage or replacement identification documents?
- Before a flu outbreak, may employers survey employees to identify who may need to stay home, telework, or work an alternate schedule to care for children because they are dismissed from school or child care, consistent with the Community Mitigation Guidance from HHS/CDC?
- May employers ask employees if they have children or other family members for whom they may need to take care of in the event of a pandemic (for example, if schools were closed)? May they be asked if they have someone else who can take care of these family members? May this information be shared with supervisors and managers?
- In light of the ADA requirements, how may employers ask employees about factors, including chronic medical conditions, that may cause them to miss work in the event of a pandemic?
