I was let go from a company several years ago. Each year since then, I have been receiving a health insurance card for the plan under which I was covered while I was still employed by that company. Up until now, I have been discarding the card. But today I decided to call and find out if the coverage is still active. To my surprise, it is! It seems my health insurance was never canceled by my previous employer. Can I legally use this health insurance even though I am no longer employed by the company that is paying the premium for the coverage? I am certain the fact that the insurance was never canceled is a gross oversight on their part.
Until you get sued for their costs due to your enriching yourself from a benefit you know you are not entitled to, sure. And possibly charged with fraud, for taking money from a company that is making a mistake, not giving you a gift.
If you were to use it, you would open yourself up to criminal and civil fraud charges. The most prudent course would be to let your former employer know of their oversight and close the door on tis temptation. Good luck.
I must slightly disagree with the two gentlemen above. If your employer has more than 50 employees, a Federal law called ERISA (now Obamacare too) strictly controls the relationship between you, your health insurance and you employer. Ironically, but for good reason, ERISA even more tightly controls this relationship when you are terminated. I can tell you beyond any shadow of a doubt, when your insurance is actually terminated, they have to send you COBRA health care continuation signup package. When that happens, you can sign up for the continuation benefits but the bad news is you have to pay the premiums (including back payments) as long as the COBRA coverage period has not expired (this is extremely complicated). If you can make any argument that employer non-compliance gives you a right to COBRA in the present, you may be eligible to receive the COBRA package now. That's how strict ERISA and Obamacare are with employers. Both laws are totally pro-coverage, so when a employer makes a mistake, too bad -- they have to pay the benefits. (I have assumed you need health insurance or you would not be making this post.)
Now I start to agree with the other two gentlemen: you must do this in the light of day or you risk FEDERAL and STATE fraud fraud charges. You must be totally upfront with your former employer. Call them, explain and tell them you want a COBRA package. You will usually get one and you may have a right to one if certain complex arguments can be made. You MUST ALSO explain, in writing (preferably from counsel) EXACTLY what is going on to the insurance company too. The reason for this is HR may be hiding their HUGE error from their bosses as well as the insurance company. So you must assure that HR is being upfront with the insurer too. Otherwise, the person sending it may be committing insurance fraud to save their job. You could be seen as a conspirator or accessory to their fraud.
Again agreeing with the two gentlemen above, you MUST have a legal opinion that your receiving COBRA benefits is legal so you don't cross over into fraudulent activity. There MUST be a discussion and understanding between the former employer, the insurer and you that they agree to cover you. In sum, it is more than possible you can be covered by COBRA by paying the premium. This situation is a mess; it's not your fault; ERISA and Obamacare are both pro-coverage and very punitive with employer non-compliance so you MAY be eligible for some past, present or future benefits. You absolutely need a lawyer to make an agreement with the insurer and employer that you are within the bounds of the law. It would be better if counsel were a benefits (ERISA) attorney but, if there is agreement, then any lawyer could do it.
Since this answer is a general one for the benefit of the public, be aware when employer mistakes happen (mainly not being sent a COBRA package), ERISA and Obamacare are both probably "on your side" due to their pro-coverage provisions. However, under state criminal law, it may be seen that you are getting something you don't deserve so get it all in writing. Also, ERISA legal costs are astronomical so you likely will find both the employer and insurer will negotiate with you or, preferably, your counsel.
