Medical Insurance

Can an employer change insurance companies in the middle of the year and give the employees less than 2 weeks notice?


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2015-07-15 21:23:45
2015-07-15 21:23:45

Employers usually change their insurance on their renewal date which is anytime of the year. Yours may just have happened to be in the middle of the year. They do not have to give you notice, but even less than two weeks, that's still plenty of time for them to give you information regarding the new plan, what it covers, what your contribution, if any, is going to be. They shouldn't cancel your prior coverage until they get approval from the new company.


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If you are referring to group term life insurance the answer is no. The policy is a group policy and the policyholder is the company and the employee only and a spouse has no right to the policy. Sometimes there are individual life insurance policies sold to employees on a payroll deduction basis and they are group billed to the employer. These policies are able to be taken by the employee if they change employer and they can just change the payment type so that they pay the policies themselves.

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Yes. You can change at any time. The insurance company cannot deny the claim because you changed companies.

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He needs to notify you 60 days in advance, per ERISA. He has the option of notifying you via quarterly newsletter, so long as the newsletter announcing the rate change is sent before the change happens.

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No law addresses that, a few employees have union contracts that do.

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A. You pay less money for insurance coverage B. You are less likely to change insurance companies

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