QUESTION
If an Employer discontinues group Healthcare (not Bankrupt), What recourse do employees have? Cobra?
Asked on Mar 02nd, 2012 on Business Law - New York
More details to this question:
The restaurant I have been working for has been providing Healthcare to full time employees under a group healthcare plan (Empire)
They recently chose to discontinue coverage due to "increase in cost" (not Bankruptcy). Can someone please inform me of what rights and recourses employees have under these circumstances? How much notice, what options should be provided, etc. Do we qualify for Cobra? What about current medical bills from treatment under coverage, how long should they have to pay?
Thank you for any and all advice
-Kenneth
1 ANSWER
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Generally speaking, an employer is not required to offer health benefits and, having once offered them, is free to discontinue them. You have no recourse against the employer because the employer had no duty to provide the benefits. COBRA does not apply because the termination of the plan is not a triggering event for COBRA, and the plan needs to remain in existence in order for COBRA benefits to be provided. Your medical bills should be covered through the termination date of the plan, but not thereafter. If you want medical benefits going forward, you will need to obtain an individual policy at your own expense.
Answered on Mar 06th, 2012 at 7:36 AM