Island Air didn’t fund health plans, may have thwarted COBRA coverage
The airline broke that promise.
According to a court filing on Monday,
Employees who had medical expenses in November didn't have health coverage.
But what could be worse is the abrupt shutdown of the airline may mean employees will not be eligible for COBRA, the federal program that allows former workers to continue health coverage at group rates for up to 18 months.
When
The bills from November medical care are now the responsibility of the health insurance companies, or the insurers could opt to seek reimbursement from the employees who received treatment.
On the day it shut down,
The state's second-largest airline did not make the premium payments that were due
On
But
Klevansky wrote that the conversion of the case to Chapter 7 has legal consequences and that claims to the funds by PaCap and Carbonview had not been determined yet. Therefore, Klevansky wrote, the Chapter 7 estate's funds cannot be disbursed at "the alleged secured creditors' request merely because they wish that to be done."
In a conference call on
Now, employees who haven't been able to find new employment are faced with either obtaining their own potentially more-expensive individual health care coverage or being placed on their spouse's plan if that is an option.
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