July 2000
Q. Must
I notify my employees if I decide to terminate or change our employee
group medical coverage?
A.New
York State Labor Law requires employers to give employees written notice
30 days prior to terminating coverage, or substituting coverage which
is less favorable. In these cases, the employer must also give employees
the opportunity to continue the old coverage at the employees cost. Employers
may be liable for damages, including reimbursement for medical expenses
not covered by the new insurance plan, if this law is not followed.
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