A company is temporarily shut down and did not pay employees’ insurance premiums. Can the employees pay the premium to continue coverage?

Answer:

Employees should first contact their employer to determine the employer’s intent to pay the premium.  Employees may also wish to contact the insurance company to determine how long the payment has been in arrears, if the insurance company has provided a grace period for late payment, and how long the employer has been given to make the payment.  Employees can also contact their state insurance commissioner regarding any rights they may have under state law to pay premiums directly to the insurance company or convert the group health coverage to an individual policy.

If premiums are in arrears or coverage has been cancelled as a result of the employer’s failure to make the premium payment, employees may contact one of the Employee Benefit Security Administration’s (EBSA) benefits advisors at 1-866-444-EBSA (3272) or contact EBSA by email at askebsa@dol.gov.

Not all of the employment laws referenced apply to all employers or all employees, particularly state and local government agencies.  For information on whether a particular employer or employee is covered by a law, please use the links provided for more detailed information.  This information is not intended for federal agencies or federal employees -- they should contact the U.S. Office of Personnel Management (OPM) for guidance.

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