My husband suffered a stroke. He was placed on long term disability and eventually let go. He went on COBRA. His COBRA benefits ended then he was sent to hospital and then a nursing facility to recuperate. After a long period, the nursing center called stating that the insurance company needed to speak with us regarding benefits. We found out that my husband's former non-profit company went out of business at the end of 2010. An account was set up with $50,000 to handle COBRA costs. Someone at the non-profit had the COBRA acct. closed early, and now the insurance company has no pool of funds from which to draw to pay the bill. What do we do? I sent monthly premiums for six months to a non-existent account and am now being held responsible for the bill. What do we do? This is clearly fraud.

Judy:

Is it too late to file a clam with the BK court? You could potentially become a creditor. I would also call the IRS and DOL, if the non profit went under, your your options are limited.

I hate to tell you my personal experiance is that trustees will rubber stamp a filing unless there is the most blatant abuse. They are simply flooded with cases.

Maybe you could hold individuals responsible for pilfering the account, it really depends on the written commitment concerning the trust account. Was there a trustee that simply stole the money were they allowed to take a portion of it for management or?

As far as your premiums, I do believe they owe you those back. You were not noticed as a potential creditor?

Employer Bankruptcy and COBRA Benefits

Why did it take months i guess to get denied your claims?