QUESTION

Large Company Purchased Mine and as such is terminating my Health Ins as I am on Long Term Disability but extending coverage to all other employees

Asked on Jan 10th, 2012 on Business Law - New York
More details to this question:
I''ve worked for a large company (1000''s) of employees and have had benenfits coverage through thier insurance carrier. The employer pays half & I the other half. 6 months ago I went out on Long term disabilty and that arrangement has continued with no end date mentioned in thier SPD document for as long as I remained disabled. However my company was bought by another which is providing health ins benefits for all legacy employees EXCEPT those of us on disability since we''re not (active). They are offering cobra which I will have to pay for totally and which I am unable. Is that legal? Doesn''t the new employer have a responsibility to absorb all of the debts and liabilities of the former company (1/2 health ins coverage) which I have now became a part? My former company''s SPD informed of an end date to Dental and Life insurance after 1 year of disability but nothing about Health ins being cancelled. Thanks
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1 ANSWER

Litigation Attorney serving Greenwich, CT
Partner at Hilary B. Miller
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There are a number of questions raised by your inquiry, and unfortunately your inquiry does not lend itself to a definitive answer. The first question is exactly what is the "promise" of the former employer, and to what extent has that "promise" been assumed by the buyer (i.e., current owner). It is difficult to understand what was promised and whether what you may have received under the original employer may actually have exceeded that employer's duty. The question, and perhaps the more important one, is to what extent, if at all, employees who are not active are allowed to be covered under the group insurance plan in place. It sounds as if inactive employees are excluded from coverage. If that is the case, then your employer cannot cover you under the plan, even if it wants to do so. You should consult with an employment-law attorney regarding this inquiry. It is likely that this matter does not have a happy ending.
Answered on Jan 10th, 2012 at 4:10 PM

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