New law tightens rules on health coverage cancellation

A new state law makes employers liable for employees'medical expenses if the employer fails to properly notify employees that their health insurance has been canceled.

The law became effective May 10.

It requires that employers who cancel their health insurance coverage for employees must notify their workers in writing 10 days prior to canceling the policy.

Employers who fail to do so can be held responsible for paying the employees' medical bills up to the amount of the premium.

In the past, employers who failed to comply with the 10-day notification requirement could be fined up to $5,000 by the state labor commissioner.

Under the new amendments, employers also will have to pay employees' medical expenses up to the amount of the premium.

The legislation does not affect employers' workers compensation obligations.

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