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| *Loan,banking and credit>>>insurance fraud |
Would this be insurance fraud? |
The place I work is a small office and does not currently offer health insurance. They told us that since they are an established company, the health insurance would be very expensive if they offered it now. They recently formed another corporation under the same umbrella as the first. They say that it is less expensive for them to roll us in as new employees under this new corporation one by one and have a health insurance plan then. Can they legally do this? What happens if the health insurance company finds out they did this, as we are not technically new employees? Ya know, I don't think this is going to work for them. It doesn't MATTER, when you get a group policy, if the business is "established" or not. The quotes will be EXACTLY the same, because you're talking about the same number of people. It's NOT less expensive for them to enroll you as new employees. Can they legally do it? Well, which company has the workers comp and liability coverage? I don't think there's anything illegal about this. But it's opening up a HUGE can of coverage worms for THEM. Not you, though. The PROBLEM is, if you have a workers comp claim - who's your employer? Who gives you a paycheck? Source(s): agent, 21+ years don't complain at least you are getting coverage................ Sounds pretty fishy to me. They may be trying to avoid insurance start-up premiums. I'd be very skeptical that they would offer you coverage under the new co. They are attempting to avoid problems of not offering health insurance now by promising future coverage. I wouldn't trust what they say. It might be legal, but it sure doesn't sound ethical! Also, remember that offering health insurance is not mandatory. A child of mine worked for a co like this. Promised future coverage, etc. Found out after the fact that they didn't even have worker's comp ins, which IS required by law. Child was injured on the job in 2003 and is STILL waiting for settlement! this is a tricky situation because you are employed by the same company no matter what they call the new corporation they cannot legally cover you on the insurance of the second company unless they also pay your wages from that account law library your county should have a public law library where you can find answers to your legal questions this is sometimes located at your local county courthouse and is still your best reference no matter what anyone else may tell you otherwise ask your attorney |
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