Can A Florida Employer Cancel Your Long-Term Disability Coverage?
If you receive long-term disability insurance through your job, you count on that coverage to be there when you need it. Unfortunately, this is often not the case. Florida employers can cancel or change your LTD policy under certain circumstances, with little notice.
It’s a frustrating situation and can put both your health and financial security at risk. Our experienced Jacksonville long-term disability lawyer explains when employers can legally end your coverage, what protections exist, and what to do if you are left without benefits.
Situations Where an Employer Can Legally End Your LTD Coverage
Most employer-provided LTD plans in Florida are subject to the Employee Retirement Income Security Act (ERISA). It’s a federal law that sets minimum standards for private-sector employee benefit plans. Under ERISA, employers have broad authority to amend or terminate benefit plans, including long-term disability coverage, provided they comply with the plan’s terms and give proper notice to employees.
Situations that can result in your LTD coverage ending include:
- Your employment ends, whether through layoff, resignation, or termination.
- Your employer switches insurance carriers or restructures its benefits package.
- Your employer files for bankruptcy or goes out of business, which can disrupt or end group plans.
- You fail to meet the policy’s eligibility requirements, such as minimum hours worked per week, during a period of reduced scheduling.
If you filed a disability claim, losing your job does not automatically end benefits, provided your claim was approved before your employment ended.
What ERISA Does and How To Protect Your Rights to LTD Coverage
ERISA makes it unlawful for Florida employers to terminate or even discipline employees for the purpose of preventing them from filing for or collecting disability benefits. However, it does not guarantee that your employer will maintain your LTD policy indefinitely or that the terms of your plan will remain unchanged. To protect your rights to coverage, take these steps:
- Review your Summary Plan Description for provisions describing when coverage ends and what happens to active claims.
- File a disability claim before your last day of employment if you have a qualifying condition, and your coverage is at risk of ending.
- Ask your employer in writing whether a group conversion option is available.
- Get legal help immediately if you believe you were terminated to prevent you from filing a disability claim.
ERISA preempts most Florida state insurance laws for employer-sponsored plans, so your options for challenging a plan change or termination are limited. That makes understanding your plan documents and taking quick action in getting legal help especially important.
Request a Consultation With Our Experienced Jacksonville Long-Term Disability Lawyer
Has your Florida long-term disability coverage been canceled, changed, or terminated alongside your employment? You still have options. Farrell Disability Law provides comprehensive client support and the experienced legal service needed to protect your benefits. To review your situation and your rights under ERISA, request a consultation with our Florida long-term disability lawyer at our Orlando or Jacksonville office today.
Source:
dol.gov/general/topic/health-plans/erisa https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/erisa
