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Leaving job health care question

Hi everyone,

As I posted a few days ago, I'm leaving my job. I gave notice on Feb 14th. Last day is March 11. New job starts March 16 and HC coverage starts day 1 of employment.  

My supervisor approached me today (she's Executive Director of the org.) and said that because of the "short notice," I gave, my healthcare has already been paid through end of March.  There's no way for them to get back the $ for the unused portion.  My husband and I are both covered, and I guess the insurance cost b/w the 11th and the end of the month is $600. She asked if I could talk to the new org. about holding off on my HC coverage until April 1 and have them reimburse current org. for the amount (or, I guess, the amount of expense for new org. for my coverage 16th-31 would make sense).

Knowing the $ situation of current org., I feel bad.  I almost asked her if I'd have to reimburse current company, if they said no. However, I'm glad I didn't. Contract says that I have to give "minimum 2 week notice," which clearly I did, so I don't see that I did anything wrong (whether they're happy with length of notice or not).  She asked it in a very nice tone (which further indicates to me that she probably doesn't have legal right to ask but is asking me for a favor).  

I don't mind asking new job, but don't feel comfortable pressing issue if they say no.  I have a feeling they will, since it's a large org. and they have clear, bureaucratic policies.   

 If new company says no, how should I respond and deal with Supervisor's request?  I've been a good employee, have a good relationship with her, and don't want to leave on bad terms. Then again, it seems like it's not really my prob...right?  It's a problem with how they pay for HC and deal with employees leaving.

 Any thoughts?  Any support for me to be strong about not bending over backwards to please current org. beyond professional courtesy? 

Okay: I just received a memo for my resignation acknowledgment and it says, "Org. will provide health insurance through March 31, 2011. Since your last day will be March 11, please provide org. with a reimbursement amount of $661 no later than April 15, 2011." WTF?!

Re: Leaving job health care question

  • This sounds like BS to me, I wouldn't even feel comfortable asking the new org for something like this. I understand that the current org doesn't want to be out $600 (everyone is trying to save money and make the most of every dollar); However, this does not even seem ethical to me. You followed the policies outlined in your contract and pay your portion of the monthly premium so I don't see how they can ask for this. Is it even legal?
  • That's what I'm wondering! 

    I did bring it up with new org (now I'm thinking maybe I shouldn't have, but what's done is done).  HR said they would check if there's some kind of signing bonus my supervisor could offer, but that HR couldn't do a reimbursement.  She said she had never heard of such a thing. I was pretty upset when I spoke with them, which is unfortunate, but I was gracious for her help and explained I had just got the memo with ridiculous request. 

    To current org's credit, when I got current job, my healthcare had already been paid for the month and they did reimburse me for the month (this was back in 2007 when times weren't so lean). It's 100% employer paid, so I don't have a premium.

    So, here's the really ironic part: we're a workers' rights advocacy organization. And, they had already asked me if I would negotiate taking a few days off from new job to come back to train replacement.  I didn't agree to that.

    I did what I was contractually obligated to do and they're pissed and taking it out on me that I didn't give them like 3 months notice. They need to get over themselves. I have a right to leave and haven't done anything wrong in the way I've approached my leave.  And yet, I don't want to leave with some big explosive fight!

  • This whole situation is downright bizarre. I can't even imagine it's at all legal. While I understand not wanting to rock the boat anymore, their requests are pretty ludicrous IMO. You gave two weeks' notice - that's where your obligation ends. 
    image image
    Lucy Elizabeth 10.27.12
  • I don't think she's being honest with you. Companies don't pre-pay that far in advance for health insurance. Insurance companies invoice on a monthly basis based off the current enrolled employees at the time of the invoice.
  • I would have just told old boss "no" and leave the new company out of it. They likely don't feel sorry that the old company is out a few hundred... not their problem.

    I also agree with PP that there is no way they paid that bill for March already.

  • I could see where in February they would pre-pay for your March coverage, but since they know you are leaving, they should be able to request to remove you from their February bill (cancelling your coverage as of 2/28).  They can't just pay half a month for you though, and since you aren't working half the working days in March, I would think that you wouldn't be eligible for any benefits.  But that's just where I work.  You need to find out from your HR dept.  
  • imagepinkglaze:
    I could see where in February they would pre-pay for your March coverage, but since they know you are leaving, they should be able to request to remove you from their February bill (cancelling your coverage as of 2/28).  They can't just pay half a month for you though, and since you aren't working half the working days in March, I would think that you wouldn't be eligible for any benefits.  But that's just where I work.  You need to find out from your HR dept.  

    HR dept. wrote the memo (in conjunction with my supervisor) and they're saying that it's already paid for and offered to provide paperwork for reimbursement policy. Policy is to insure until last day of employment.

    I'm still fuming about it.  

  • Yeah this seems messed up, I have never hear of that and my husband is an insurance agent.  I'm not sure what state you are in but I wouldn't even bother the new company with the nonsense, it is not your issue. 
    Warning No formatter is installed for the format bbhtml
  • There is now way I involve my new employer in my current employer 's payroll benefit problems.

    I would advise the HR dept. that perhaps a lesson could be learned from this and the P&P for length of notice should be reviewed and updated.  Futher conversations about the issue should be made directly to your attorney.

    This is not your fault or your problem.

  • I agree with this. It comes off like you will not put up with their crap yet professional at the same time.
  • Just tell them that you don't need coverage after 3/11. Peace.  They might be able to get a credit from the insurance company. This is NOT.YOUR.PROBLEM.
  • Is this a section 125 plan that the current company is offering?  Are the premiums pre-tax?  If this is a Section 125 the cancellation date is all determined by the Summary Plan Description - which they have to give you a copy if you request one in a reasonable amount of time.  Normally health coverage with a section 125 plan will end on the date of termination or the end of the month.  If it's the end of the month the employee is still responsible for their portion of the payments for that coverage.  If the $6?? is something you'd pay via paycheck deduction you probably are still required to pay that.
  • I'm not sure about that. We get our benefits through a center for nonrprofits that offers packages.

    Again, I don't have a premium. It's completely employer paid. They're not asking for me to pay my premium, since I don't have one.  They're asking for the amount back after my last day of employment to end of month, which they've already paid.

    They're saying that they've already paid through the end of March and there's no way they can get back the March 12-March 31 amount. So I"m going to remain insured through them until the end of the month in any case.  They are insinuating that since I gave "short notice" (4 weeks!) I'm somehow responsible for that amount.

    They first asked if I'd ask new org. to see if they could do a reimbursement for the second 1/2 of month costs, since I wouldn't need insurance during that period and new org would save by not putting me on plan until April 1.

     Then I received the memo saying that I'd be responsible for reimbursing that amount regardless.  

  • I work for a health insurance company. Here; commercial policies end with your last day of employement. We get paid bi-weekly, so it's only deducted two weeks in advance. That being said, if your pay period is similar to mine, there is NO way they over paid unless they're just totally running this company into the ground. This sounds really fishy. The $600 sounds like Cobra, and they can't automatically sign you up for Cobra.

    Regardless you don't have to ask your new employer to start the insurance later. Legally I'm not sure they would just to satisfy your old company. Insurance has a lot of rules and if the company makes you eligible the day you start, that's when your insurance will start. I wouldn't ask your new company about it at all. You can also have two commercial insurances at the same time. One will be primary and one will be secondary. In your case it sounds like the bigger company will be primary (which might be your new company in this case) so the other insurance company should be happy you're getting new insurance lol.

     Since your new job startes 03/16 I'd tell your old company to F off, and keep the money and terminate you on your last day of employement. You'll have NO insurance for 5 days but hell that's better than like 50% of americans right?

    If you want more help I'll check back, or you can PM me (I will check) I feel like this insurance company is taking you for a loop, and some do if they think you'll just pay. Good Luck!!

    Wedding Countdown Ticker
  • imageclecoarr:

    I'm not sure about that. We get our benefits through a center for nonrprofits that offers packages.

    Again, I don't have a premium. It's completely employer paid. They're not asking for me to pay my premium, since I don't have one.  They're asking for the amount back after my last day of employment to end of month, which they've already paid.

    They're saying that they've already paid through the end of March and there's no way they can get back the March 12-March 31 amount. So I"m going to remain insured through them until the end of the month in any case.  They are insinuating that since I gave "short notice" (4 weeks!) I'm somehow responsible for that amount.

    They first asked if I'd ask new org. to see if they could do a reimbursement for the second 1/2 of month costs, since I wouldn't need insurance during that period and new org would save by not putting me on plan until April 1.

     Then I received the memo saying that I'd be responsible for reimbursing that amount regardless.  

     

    I seem to recall in an early post you said the employee handbook said two weeks notice was the policy, which you gave them.  I'd ask them to show you -- in writing -- where the policy is that says you are responsible for reimbursing them for the insurance.  If they can't, and they try to take it from your final check, I would report them to your state's version of Wage and Hour (or Dept. of Labor).

  • imageFrannyS:
    I don't think she's being honest with you. Companies don't pre-pay that far in advance for health insurance. Insurance companies invoice on a monthly basis based off the current enrolled employees at the time of the invoice.

    I'm in charge of our benefits at the company and we are billed monthly for the health coverage.  If we have someone that gets canceled (for whatever reason, doesn't matter), we submit the cancel request, w/ an effective date.  Ex:  we paid for March's service this week.  If someone quits on say 3/11, I submit the request to end their coverage on that date, and when we get our bill for April, they give us the credit/retro back for the 2 weeks they didn't have their coverage.

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