If you pay health insurance premiums to your company, and the company declares bankruptcy – and so does not actually make the payments to the health insurance company – what happens may depend on the type of bankruptcy filed as well as the specifics of your health plan. Employers can no longer pay premiums for individual health policies or reimburse employees for individual premiums on either a pre-tax or post-tax basis (the payment or reimbursement of group health insurance premiums is still allowed). Pretax income isn’t the only way employees pay for medical insurance. Employer reported income that is $40,000.00 short of what my income was and paid a premium based on the wrong income that is $40k lowere than actual. The question is: "her employer took the deduction from her check for insurance. ... she discovered that her insurance had been terminated by the employer at the beginning of her termination month and that the premium was not paid. Insurance coverage ended January 31, 2012 instead of April 1, 2012 which would have been the end of the coverage period. I have an approved disability claim. Jan. 27, 2014 - Employers may need to report employer-sponsored health care coverage amounts on W-2 forms being issued this January 2014. It’s not typical, but there could be benefits down the road from having a higher reported income despite the additional taxes. Plan book says I am entitled to 60% of my income. Coverage paid by employer. In this situation, there should not have been a 90-day grace period, because you didn’t pay any premiums during the plan year, which began in January. If your health coverage is terminated due to non-payment. She is now facing unpaid bills that reach way beyond her means to pay. In general, however, if your company declares bankruptcy, you will have your health insurance premiums … Individuals do not have to pay taxes on these coverage amounts and should not report it as income. It's a choice left between the employer and employee, but there are a few important rules to follow. I only learned about this a week ago when my pharmacist would not fill my presciptions. However, starting in 2014 under the Affordable Care Act, employers with more than 50 employees will have to pay fees if they don't offer health insurance coverage and have at … My employer failed to pay the group health insurance premiums. Some employers actually provide the option for employees to use after-tax funds to pay for health insurance. The state insurance regulator already has revoked the agent’s insurance license for five years, and has ordered him to pay a $3,000 civil penalty and $55,000 in restitution. If you haven't paid your May premium by July 31, you lose coverage retroactive to the last day of May. Employer repeatedly fails to pay health insurance premium, causing insurance to terminate [usa-ca] Edit 5: thanks for the advice on how to get new insurance, that isn't the question. 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