Q: I was laid off in October of 2007. I elected to take the COBRA coverage from my employer. It is a PPO plan and I pay $777.58/month for the coverage. I received a bill from the insurance company stating that my prescription coverage was canceled in Jan 08 and I owe $1327.38. The letter states they apologize for the inconvenience and my account has been sent to collections. Can my employer change my coverage without notice or a change in the amount I pay for COBRA? Am I responsible for the prescription charges?
A: An employer has the right to change group health insurance companies.If your previous employer changed group health plans, your COBRA coverage must be transferred to the new plan. The employer has to provide you with new ID cards and a Summary of Plan Description for the new benefits.You should be able to submit your prescription bill to the new insurance company for payment.
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