7 ms·
What does the cause matter? Company's dead, the employee "involuntarily departed."
by delinka 8y ago
What does the cause matter? Company's dead, the employee "involuntarily departed."
- dragonwriter 8y agoThe cause matters because the right to individually buy into the existing employer-sponsored group health plan. So, if the employer no longer exists, and the employer-sponsored health plan no longer exists, the right to buy in is meaningless.
- delinka 8y agoIf your company is buying from an insurance company, that insurance company is required to offer the same plan to the former employee.
- pandaman 8y agoIt matters if it was a self-insured plan i.e. the company itself paid insurance claims.
- delinka 8y agoIn my case, my company "self-insures" but they hire processors (Bluecross, CIGNA, etc) to handle the claims. I doubt that any employer is processing all claims themselves directly. I would have to do the research, but it seems sensible to me that the processor would require some amount of money in escrow (or some other insurance policy) to cover such an event.
- pandaman 8y agoMost companies do and thus, most people believe they have a policy from the processor, not their company. Also many companies hire processors for payroll too (ADP and the likes). Does it seem sensible to you that in this case the payroll processor would require some amount of money in escrow to cover severance, PTO, California's WARN etc in case of bankruptcy?
- delinka 8y agoSimilar to people thinking they have a policy from the processor rather than their employer, health providers are completely unaware that my employer pays the bills. If the providers don't get paid according to the contract, they'll go after the processor. The processor wants a buffer, insists on escrow or something. As employees, people are seldom under the delusion that they work for, e.g., ADP. My last company paid me through a processor. My direct deposits showed as coming from the processor. To any bank, it looked as if I was employed by the processor, but the employees knew who the employer was. Should the employer suddenly cease to exist and owe employees anything, employees will go after the employer, not ADP.
- pandaman 8y ago> If the providers don't get paid according to the contract, they'll go after the processor. No, not really. Do a search of "insurance claim denied" and see who is on the hook. Even in the case when the processor simply decides not to pay.