Wednesday, March 28, 2012

Ineligible Plan Participants Prove Costly

COBRA/USERRA

A recent lawsuit reminds us why health plan ineligibility is a substantial risk that is both costly and avoidable.

The case of Denver Health and Hospital Authority v. Beverage Distributors and Principal Life Insurance was about a domestic partner enrolled in the employer’s health plan. After the participant racked up over $750,000 in medical bills from a motorcycle accident, the employer rescinded coverage because the domestic partner was ineligible according to the terms of the plan.

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