Employeer Mistake

My wife works for a small private practice with maybe 25 employees most of which are part time. Since February her employeer has failed to deduct health insurance premiums from her paycheck (pay is every two weeks). This was in no part the fault of my wife, in fact it wasn't until I tried to figure her monthly premium that we noticed this. We then addressed this problem with her employeer of which they admitted to the error. They since have notified us of the total amount that they will need to collect due to this error (well over $2,000). The employeer left it to us to decided what increments we would like to have deducted above the normal monthly premiums to make this up. My question is do we have a legal obiligation to pay this back? Due to thier oversight (error), are we still responsible?

It is good to note that despite not collecting the premiums the helth insurance remained active this whole time. So I guess they paid the bills, but just have poor book keeping. I can't imagine how this happened in such a small company, but I have heard larger companies eat the bill for this type of error.

Thanks!

Q: My question is do we have a legal obiligation to pay this back? Due to thier oversight (error), are we still responsible?

A: Yes. Someone else's screw up does not relieve you of paying your bills. Especially in this case: "...It is good to note that despite not collecting the premiums the helth insurance remained active this whole time...."

While it is true that some larger companies are willing to eat this kind of error, they are not legally obligated to do so; nor is what another company may choose to do binding on your wife's employer.

The bottom line is that it doesn't matter who made the mistake; she needs to make repayment. You don't get to have free insurance because of a clerical error.

Thanks

Ok, thanks for the replies, though I think some of the comments imply that we are looking for a free ride. :no: This could not be further from the truth. I understand our obligation to pay for insurance and all other bills unlike most Americans.:angel Simply put I just wanted to know what options were available for this type of situation. We have made arragements for a repayment schedule and luckily it didn't go unnoticed any longer . I'll put this one with the rest of the mistakes I find in corperate America pricing and accounting.:dgrin

gamecocks35 said:

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Ok, thanks for the replies, though I think some of the comments imply that we are looking for a free ride.

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I don't see any comments even vaguely suggesting that.

I'll take a free ride.

I just wanted to know what options were available for this type of situation

Unless the employer is willing to forgive the premiums, which as indicated they are not obligated to do, you have one option and one option only; that option is to make payment.

While I did not, in fact, imply that you were looking for a free ride, the fact that you even asked the question seems to suggest that you thought it was a viable option.

Easy Easy, now.

I never knew researching all viable options available for any situation in order to make the best decision would imply we were trying to skip out on our obligations.

"Someone else's screw up does not relieve you of paying your bills" by Seniorjudge.

"You don't get to have free insurance because of a clerical error." by cbg.

This inquiry was not meant to imply I'm looking for a way out, but rather to ensure the solution was correct.
This was again an employer mistake which put us in a situation of obligation. With that, I wanted to ensure they could then enforce this obligation on us. I understand it is money that would have been taken anyways on a per pay basis, which is why we agreed to make installment payments to pay it back.
Your comments though valuable in content lack a sense of tact in wording. Perhaps you deal with many people on a daily basis only looking for a way out, thus your words reflect this assumption, and are a bit cynical and condescending. With respect to your apparent legal knowledge that doesn't give the right to talk down to people who don't know the law, as I'm sure there are areas you seek others advice. Again thank you for your time to respond, I do appreciate the advice, regardless of how it was given.

gamecocks35 said:

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This was again an employer mistake which put us in a situation of obligation.

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No, you put yourself in the obligation by signing up for the insurance.

Tunnel Vision.

Never mind, you are about as bull headed as I've dealt with. No kidding our obligation was made when we signed up for insurance. The company also made an obligation to make automatic withdrawals to cover the payment. We have up held our obligation by working to generate an income which would warrant a withdrawal and continue to do so. It was the employer who broke the agreement thus altering the situation. Apparently you can't recognize the facts of the situation. It seems as though you have very little ability to see both sides which would in fact make you a poor judge. I'm very sorry you took the time to respond and wish you the best of luck in your future being so narrow minded. Good day to you.

gamecocks35 said:

Never mind, you are about as bull headed as I've dealt with. No kidding our obligation was made when we signed up for insurance. The company also made an obligation to make automatic withdrawals to cover the payment. We have up held our obligation by working to generate an income which would warrant a withdrawal and continue to do so. It was the employer who broke the agreement thus altering the situation. Apparently you can't recognize the facts of the situation. It seems as though you have very little ability to see both sides which would in fact make you a poor judge. I'm very sorry you took the time to respond and wish you the best of luck in your future being so narrow minded. Good day to you.

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I will agree with you on one thing; figuring out those deductions is often very hard.

Nonetheless, the obligation remained in your court.