I started a new job in which I was eligible to enroll for health insurance after the 30 day probation period. I enrolled after the 30 days but now my employer is telling me that they back date the health insurance to when I first started. They are taking out double the money. I had no problem not taking the coverage from the new employer because I was still covered under another plan. Can they back date the health insurance and take out money from my check?
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INSURANCE ANSWERS (8)
As long as they give you coverage to that time, yes.
It sounds like a case of your company/HR department/company’s broker not knowing what they’re doing. It sounds like there is NO waiting period, but they’re choosing to fill out the paperwork later in the month to avoid having to fill out paperwork for people that don’t make it past three weeks.
Also sounds like they should just have a 30 day waiting period to make it easier on all parties. If you have a “date of hire” start date, then you should be enrolling in insurance on or before your date of hire.
Regardless, it has to start when it’s supposed to start. They’re just doing a terrible job explaining that. But, yes they can back date and do retro starts. We just did that for a client. We started a new health plan for June 1 and enrolled everyone for the health plan in May. They also had a dental plan, but due to time constraints and other factors, we didn’t enroll the dental in May. We enrolled it the last week of June for a June 1 start date. So, the company should double dip a couple payrolls to catch those premiums up.
This is the thing:
By IRS regulations, they have to offer you insurance within 90 days. A company can have a shorter period if they want, your company is 30 days.
Officially per IRS regulations, if you miss the deadline, you miss the deadline and you cannot enroll.
Your company is skirting this, they are saying you missed the deadline, we’ll pretend you didn’t, but to do that you have to pay like the deadline wasn’t missed.
Your options are:
1. pretend you didn’t miss the deadline and pay all the was due
2. admit you missed the deadline and not have coverage through the employer until the next open enrollment period.
Yes. By law they have to. Unless you can prove you were covered under another plan, you would start paying after the 30-day wait period. Why didn ‘t you provide the proof that you were covered and have coverage start after that time period. I am afraid that what has been paid so far is lost. They do not give refunds for people ‘s failure to specify the date on which health insurance should start and that they had coverage up to a certain point. It has been mandatory by law for quite some time now and it is your responsibility to properly inform your employer of your coverage status when you are applying for new health insurance. Show them the paperwork now so that they can stop future retroactive payments.
No, they cannot do that legally. You dont have to pay for a month you werent eligible for.
It sounds illegal to me. The date you accepted the insurance should be the date the deductions start.
If you were not eligible to receive health insurance for the first 30 days, they cannot deduct payments for the first 30 days, and especially they cannot go back and deduct payments retroactively.
They CANNOT take out money to pay for coverage you did not have. Had you been in a horrible car accident during those 30 days, your employer and insurance would NOT have covered you…..therefore you were NOT covered during those 30 days. Also sounds like a scam that someone at your company is doing to pocket the extra money