Colorado’s
Channel 7NEWS reports that Ron Flanagan, a Vietnam vet’s health insurance was
canceled because of a $.02 (yes, that’s two cents) premium underpayment.
Frances Flanagan, the veteran’s wife, mistakenly paid $328.67 for
the monthly premium payment instead of the $328.69 that was due. She says
that when making the online payment for November, she hit the 7 key instead
of the 9 key. A check for the full December premium was received and cashed
by Ceridian Cobra Services, the Flanagan’s Florida-based insurance
administrator; nevertheless, Ceridian canceled the Flanagans’ health
insurance policy.
Here’s the rub: the Flanagans say they first found out about the
cancellation on January 13, just as Ron was being prepped for a bone biopsy
at a Broomfield medical center in connection with his struggle with multiple
myeloma–bone marrow cancer– that was diagnosed in September
2008 and is believed to have been caused by Ron’s exposure to Agent
Orange in Vietnam..
Ron has had two surgeries for stem cell transplants and needs another
by February. A donor is available, but Ceridian will not pay for the procedure.
The transplant can be done by the VA hospital, but would require Ron to
travel to Seattle. In the meantime, Ron may start oral chemotherapy to
help manage his condition.
A Ceridian spokesperson told 7NEWS that the company canceled the policy
because of the insufficient payment and that the Flanagans were sent several
notices of the shortage, together with more than one grace period reminder
notice, all consistent with COBRA regulations. The Flanagans say that
nothing they received clearly informed them that they could be dropped;
otherwise, they would have just added the two cents to the December payment.
Don’t you think a simple telephone call probably would have solved
the problem? Ceridian says they “simply do not have the capacity
to be able to personally call continuants and remind them of the status
of their COBRA benefits.”
You be the judge.
“Something to Make Your Day Just a Little Drearier,” Colorado Business Litigation Lawyer Blog, posted 07/08/10