LogFAQs > #903515886

Emeraldegg posted...

Also how can an unrelated company cancel a plan that has nothing to do with them?

I imagine it was because entities in insurance tend to be awful at communicating. FD had a plan through the BCBS, who does not receive any government money for individual plans. "Free" insurance does generally receive government funds, based on how many members they enroll. So in trying to consider their member and identify the cause of lapse, they likely identified that he transferred to a BCBS plan.

Then they must have contacted the BCBS, and said "hey we think you have our member! He should be with us!" The BCBS didn't check their records and just said "ok fine take him then". But since insurers can't exchange PHI (personal health information), they couldn't send the records over.

That's the only chain of events i can see causing this, but I'm no expert on the individual market. I guess there could also be some mixup if the first company is a subsidiary of the BCBS, since companies under the same umbrella are sometimes even worse at communicating than competitors.
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~Peaf~