Personal Bankruptcy Chapter 7 Corp. responsiblities

[Ebery]

Does anyone know the Insurance Laws in Illinois, when a self-insured company files for Chapter 7? My previous employer was medically self-insured, (unknown to the employees). The employees paid premuims and Cigna only processed the claims for my previous employer. Now after this company filed, I have doctors looking at me for payment. These claims in question happened when I was "Covered". Now Cigna is saying they have no money (from the employer) to pay my claims. WHAT IS THE PURPOSE OF INSURANCE??

 

[jody]

I don't understand what your employer going bankrupt has to do with Cigna saying that you aren't covered. If you paid your premiums then you should be entitled to insurance. Are they saying that your company didn't pay the premiums that they took out of your paycheck so they aren't covering the insurance?

 

[brian]

So the employees paid the premiums and the company was supposed to cover the insurance with Cigna as administrator but Cigna said that since the company was bankrupt there was no money to pay out.... it makes sense to know who your insurer is. If this was unknown to the employees and sold to you as being provided by Cigna it sounds like you may be able to sue some of the people responsible for what could be fraud. The purpose of insurance is important but here it just sounds like it wasn't a good quality insurance plan.