Saturday, October 1, 2011

Can health insurance company drop you if you making COBRA payments on time

Can health insurance company drop you if you making COBRA payments on time?
My sister is in a nursing home. I have been paying her COBRA since December. The nursing home called and "warned" us to find a medicaid facility because her health insurance will probably drop her. Why?
Insurance - 3 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Is her former employer going out of business and/or dropping their insurance plan? If the employer's group insurance plan no longer exists, then neither does COBRA. COBRA = continuation coverage of the (former) employer's group plan. If there is no plan, then there is nothing to continue.
2 :
There are really only two reasons your cobra gets cancelled, when you're making your payments on time: 1. The insurance company goes bankrupt (into receivership) or 2. The prior employer cancels the group health insurance policy. That happens when the employer goes bankrupt, or the business closes.
3 :
Those previous answers are right--so if they really are ending her coverage completely, you should contact the insurance directly and ask about it. Also, I'd clarify if they're actually dropping her from the plan, or just no longer covering the nursing home stay? Just a thought....again, I'd call the insurance to verify what's happening and why

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