Will get fined and penalized by my Health Insurance Company? (claim, reimbursement)

[studio05]

Hi everyone. I currently and have always gotten free health insurance because i made zero income. However, i made money in 2010 as self-employed but didn't file taxes. I will be filing late this year and well aware i will be paying penalties.

My problem here is that my health insurance company automatically signed me up for 2011. But the thing was i wasn't eligible for it and didn't know about this till later on this year.

My question is will i get fined by my health insurance company for this and how much? I heard this was health insurance fraud? I did not mean to do this at all but worried that once i file my taxes, i probably will be getting a letter from my health care provider? Or is there a chance nothing will happen. Someone tells me that they will catch up eventually. If i call them right now to cancel it, would it be fine and not subject to penalties? I would really appreciate it if someone know of anyone that was in this type of situation or read about this and what usually happens.

The reason i don't want to cancel now is some other family member uses it for themselves but i think if i tell them right now, it would screw up their health insurance for this year? I read something about this.

By the way, i use HEALTH FIRST NY. Does anyone know the rules on this? I'm very worried i might get a huge bill from them. And if i do, does anyone know how much it might be? Someone tells me because Healthfirst NY is welfare, then its fraud and i would get in big trouble? Another person tells me there is serious fines for this like $10,000+ but if i tell them right now, would i still be okay? i don't mind reimbursing for this year but i don't want any huge fines on me.

[TFW46]

Omygosh, does someone HAVE to tell you to be honest???

Call the insurance company and tell them that you had a job and income and you're sorry you didnt advise them sooner because you had claims for which you werent eligible.

They'll probably make payment arrangements for you to pay them back. That's a lot better than their having to come after you when they find out that you werent eligible (and, believe me, they will find out). They probably wont fine you if you contact them but they do so if they have to contact you.

[Minervah]

The reason i don't want to cancel now is some other family member uses it for themselves but i think if i tell them right now, it would screw up their health insurance for this year? I read something about this.

This is the worst part of the situation. When the insurance company catches up to you, and they will, you will be responsible for paying back all this family member's reimbursements to his or her providers of service to the insurance company not to mention the fines and possible jail time for insurance fraud. The other family member may also suffer the same penalities.

You have a contract, your insurance policy, and you are in violation of that policy. Even though you say the renewal was a mistake on their part it is up to you to make it right.

You are using something to which you are not entitled to and you are aware you are not entitled to it. Before you get in any deeper, call the insurance company, tell them about the mistake and take the consquences. If you wait for them to catch you the situation will be so much worse.