Employer changing Insurance Plan mid-year. Deductible not rolling over
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Employer changing Insurance Plan mid-year. Deductible not rolling over
My employer is starting a new insurance plan with the current provider effective Jul 1. They are dropping the current plan I am in and only giving us an option for a High-Deductible Plan. I was told that the deductible that we have already paid in since the first of the year will not apply to the new plan. Is this legal?
Asked on May 28, 2009 under Insurance Law, Tennessee
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
Unfortunately, yes. Health insurance companies have their deductibles apply on a calendar year basis regardless of when the plan starts. Each plan is separate, and payments made in regards to a previous plan do not apply to a newer, different plan, even thought it's the same company. The insurer *could* credit your new plan with payments made under the old plan, but that's at their option--they're under no obligation to do so. Your best bet is to ask your employer to try and push a little harder to see if they'll credit all--or at least part--of employees' previous payments. Since you employer is the customer, they at least have some leverage with the insurance company and might be able to get them to allow the credit.
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