Federal employees who were fired, reinstated, and fired again by the Trump administration are now learning their health coverage lapsed despite assurances otherwise. The people affected all work for the Department of Commerce in different areas. They were fired back in late February and early March as part of the Trump administration’s purge of newer hires or probationary employees.
The firings happened so suddenly and chaotically that there were immediate questions over their legality. Within weeks, a federal judge ordered agencies to reinstate these workers temporarily. But then, an appeals court voided that order, and the Commerce Department fired everyone again the very next day.
When these Commerce Department employees were first fired, they were told that their health insurance would end 31 days after their last pay period, which would have been April 8. But the confusion began when they were reinstated. Many of the employees struggled to get an answer to the basic question: do we have our health insurance back?
Ya’el Seid-Green had scheduled arthroscopic hip surgery for April 9. She kept asking her supervisor and finally, the day before her surgery, got forwarded an email confirming her insurance was being reinstated. She went through with her surgery, paying her $150 co-pay.
But the next day, April 10, during her post-surgical appointment, she learned she was fired again.
Health insurance confusion for federal employees
The government has a policy of giving employees 31 days of coverage after separation.
They had been paying their premiums, and insurance companies had sent new insurance cards after they were reinstated. Even after being fired again, many kept their medical appointments. Keri Murphy, another affected employee, had foot surgery on April 17.
She confirmed with her insurer that she had coverage, only to find out later her insurance had lapsed on April 8. She didn’t receive the memo about this lapse, only hearing about it from colleagues. Federal employees can opt for COBRA-like coverage and pay out of pocket to continue their plans.
Ya’el Seid-Green plans to do this for a month since her surgery’s negotiated insurance rate was over $17,000. Keri Murphy, who had her whole family on her plan, estimates continuing it will cost around $3,000 a month, money she doesn’t have after losing her job. She may have to cancel a follow-up appointment to remove her bandages.
The Commerce Department did not reply to detailed questions about the situation. The Office of Personnel Management referred to general benefits information. An outside expert on federal employee benefits noted this situation is unprecedented and thus, unknown territory.