Former Executives Demand EmblemHealth Honor Lifetime Insurance Agreements

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EmblemHealth, Inc., EmblemHealth Services Company, LLC, and subsidiary ConnectiCare, Inc. are on the receiving end of a proposed class action lawsuit filed by 24 former employees who claim the companies unlawfully broke their agreement to provide the plaintiffs with lifetime health insurance. The plaintiffs, who the suit says are all retired executives, allege that upon their retirement from service with the defendants, they all entered into agreements that guaranteed them lifetime insurance coverage if they met certain criteria.

Beginning in May 2016, however, the plaintiffs claim they received letters from Emblem notifying them that it would no longer honor their insurance agreement and offering them an opportunity to purchase coverage “on a private health insurance exchange.” The suit argues that the plaintiffs have all met the agreements’ criteria and demands that the defendants “uphold [their] end of the deal,” noting that alternate insurance options would place a significant financial burden on the plaintiffs and would fail to offer coverage as “comprehensive” as the insurance they were promised.