Insurance -- what a fucking scam. How can this be legal?

[Connonym]

I'm technically self-employed (which really just means that the people I work for are cheap-assed bastards who don't want to pay employment taxes or any benefits) and as a condition of that I have to carry unemployment insurance on MYSELF. The first kicker is that it's not even possible to collect on an unemployment policy on yourself so you're buying a worthless policy just to "prove" to the IRS that you're not an employee. So effective 01/06 it was mandatory that I have a policy and I paid my +/- $300 and bitched about it. Renewal came up this January (now with an additional $50 "terrorism" rider :eyes: ) I ponied up but then, THEN I get a notice that after an audit they have determined that my policy should be nearly $1700 a year and they want me to pay retroactive to 01/06. I got a bill from them for almost $3000 for a WORTHLESS insurance policy. I'd like to know how, one year after my quote, they can decide that the policy should have cost nearly 6x more and then retroactively charge me? My income was actually less than the previous year so it's not like I had a huge leap in income or misrepresented anything the first time. I refused to pay it and they sent a collection notice for last year's additional premium plus the six months or so of this year that had already passed and they canceled my policy. WTF? It feels like extortion. I'm in the process of looking for another job because it's bullshit the hoops that I'm being made to go through to prove I'm not an employee when, in fact, by almost every IRS definition of employee I'm an employee.

[Oeditpus Rex]

1. The GOP (n/t)

[Connonym]

2. that would explain it

I used to be such an idealist and it's really killing me inside as I'm finally waking up to just how much the system is set up to favor the powerful and screw the weak. I literally feel betrayed that I was taught this boatload of crap about American idealism and that I was stupid enough to buy into it for so many years before I started to catch on that winning the American dream is about as realistic as winning the lottery. This is not the reality I signed up for when I was in my 20s. I'm truly mad as hell.

[Oeditpus Rex]

3. I think we need a full-scale revolt

There is no American Dream unless you're born into it. That was a bill of goods they sold us after WWII when Everything Was Wonderful. It was designed to get us to buy, buy, buy so the rich could get richer and more powerful.

When Eisenhower warned of the military-industrial complex in 1960, he was only partially right.

[Connonym]

4. and give us enough debt to keep us afraid to quit our jobs or go on strike

Maybe I need to go on anti psychotropic drugs but I'm really starting to believe that there's a master plan to suppress us using carrots, sticks, god and money.

[Oeditpus Rex]

6. You'd have to get the meds from Canada

Here, they'd cost $850 per week.

Of course, getting drugs from Canada is illegal because trying to survive hurts Mer'ka.

:patriot:

[Frustratedlady]

5. I'd call the Insurance Department/Regulator in your state

That's a bunch of bull. What would they have sent if you'd used it a lot of times. If they can't get their ducks in a row, why should you be billed? Something is fishy and the state insurance regulator needs to know.

On edit, I see this isn't health insurance, but unemployment insurance? That's through the state, right? So much for my suggestion. Well, the comment still stands that it's their mistake, so why would you have to pay through the nose to correct something that's already over and done with. Raising future premiums wouldn't be wrong, but this retroactive crap sure is.

[ThomCat]

7. Talk to the IRS. If you can prove that you are an employee

under their definition of what an employee is then the company can be held responsible retroactively.

That sounds like a total scam, and it shouldn't be legal. What contract allows one side to go back and change the billing on a whim, and then harass you into handing over more money?
x(

And you are right, you shouldn't have to buy a product that, by definition, you can't ever use.

Have you spoken to an attorney? Could there be a suit against the insurance company for breach of contract, or harassment, or something?
:shrug:

[Connonym]

8. Thus far my way of dealing with it has been to just ignore it

which clearly is not doing me any good and I know I need to do something about it other than just bitch. I'm so incredibly disillusioned with the company I work for. I've been with them since just over they formed nine years ago. As they've grown they've become totally impersonal (one of the two owners actually told me that she no longer has time to care about our personal issues). I stuck with them through the loss of our biggest account, got a part-time job, supplemented with a second mortgage on my house and pretty much ruined my financial situation because of my loyalty (and, let's face it, my fear of change). I hate coming here and whining all the time but I feel so betrayed and so unsure of how to deal with all the negative changes this has brought about. This is actually more traumatic than my divorce.

Thanks Thomcat, you really ARE one of the sweetest people. I hope you're feeling better today than you were yesterday.

[ThomCat]

9. I hope you can get past that fear of change.

:hug:

Some major changes could greatly improve your life.

Yes, I am feeling much better today. I'm having some unpleasantness and inconvenience, but such is life. At least the pain is manageable today. :)

[pitohui]

19. yes she should have filed with the IRS the day this was first mentioned

it's totally illegal but the IRS runs years behind in enforcement if you don't contact them

she should have never paid a dime to thie insurance but this is a minor issue, the MAJOR issue is that her employer is stealing her social security contribution by putting her down as a contractor -- that is thousands out of pocket every year that she doesn't understood would normally be paid by the employer

jesus nine years! there are hundreds of thousands of dollars potentially at stake, she needs a lawyer who specializes in social security issues

stop and think, if you're robbed of several thousand dollars of social security contributions every year, that's going to make a HUGE hole in your ability to retire

the insurance scam is just petty cheese, the icing on the cake, they figure she's stupid because she has acted stupid for 9 years so why not rob her for a little more?

[Suich]

10. A CPA might be able to help.

Good luck!

[Matariki]

11. wow. is this a new law?

what if you have your own business as opposed to contracting for a company? maybe call a state labor relations office and stick it to the company who you're working for?

[undeterred]

12. Well, after what happened to me this year

There is no such thing as unemployment compensation if you are an employee and the employer decides they don't want you to have it. I have to pay back $3300 I collected after the judge decided that I quit, which I didn't. We have no rights. Corporations are people, they have rights. I appealed to our Democratic governor's commission and they sided with the corporation. And the corporation gives PAC money to my "progressive" congresswoman. So, I am totally cynical about all this and I don't even expect fairness any more. You have to be a lawyer to work your way through this.

[Gormy Cuss]

13. Who set the condition that you had to have unemployment insurance?

I never had such a requirement when I was self employed and I had contracts with Federal contractors. I did need to document that I was self-employed and not an employee.

I agree with Thomcat. See an attorney. If you meet the definition of an employee, someone else should be paying your unemployment insurance.

[Connonym]

14. the people I work for got audited

and I got a notice from them basically "effective 01/01/06 you will be required to retain an unemployment policy in order to continue to contract work from our company"

[Lydia Leftcoast]

16. This sounds like "company make up own policy"

I've been self-employed for 14 years, and I've worked for companies in four countries, including the Feds and two major textbook publishers.

The criteria I've had to meet are things like owning my own equipment, being free to refuse work and to set my own hours, having an office on property not owned or leased by the company, being free to work for other employers at the same time, buying my own benefits, working only on specifically defined projects, etc.

By definition, a self-employed person cannot be unemployed. If you're idle, it's because you haven't been able to drum up business or you've chosen to take time off.

It sounds as if you need to talk to an attorney who specializes in employment law. You may even be able to get a refund of your premiums. Wouldn't that be nice? :-)

[baldguy]

15. Ye oldest scamme in the worlde

From July 2, 2001
http://www.thismodernworld.com/

[IntravenousDemilo]

17. I shall do everything in my power to destroy the insurance industry.

And after that's done, I'll set to work on the banks.

[pitohui]

18. it isn't legal

you are conspiring to commit fraud and the sad thing is you are both conspirator AND victim

if you are an employee but the company is trying to force you to pose as a contractor, it's fraud, and it isn't just they who are guilty of a crime, but you are complicit too -- you would never be charged but you are putting money in criminal pockets

get a lawyer, contact the IRS, sue the company for not paying past social security benefits, sue the insurance company to recover the stolen funds

you have a pretty big to do list but i don't see what option you have unless you want other people walking on your face your whole life