My question involves insurance law for the state of: California
I married September 2013 and at that time my wife signed me up to be on her health insurance plan because it is a better plan. I'm just now (Jan 1, 2014) canceling my insurance through my job now that I know hers is in effect. They overlapped by a few months.
In October I became ill and had about $50,000 worth of hospital bills. My work insurance policy paid almost all of the bills. I didn't realize at time, or even think about it, that my wife's plan was also covering me. My wife's plan had gone into effect just a couple days before I got sick, but at the time we had not yet received a card or any official indication that I was insured under her plan in addition to mine. Without realizing we were making a mistake we never told either insurance company or the hospital that I had a second plan.
I'm 90% sure my plan would have been my primary plan since it is my plan from my work. Although I'm not 100% sure? What should I do now that I realize I made this mistake? Should I contact one or both insurance companies and let them know I was ignorant of the rules, and my dual coverage, and didn't mention this second plan? Additionally, if I do confess to the insurance companies what should I expect is going to happen? Will they re-open all their payments and make new determinations regarding how much they should have paid? Will I be penalized for not informing everyone up front of the other policy? Am I better to just keep quiet?
I never meant to make this mistake and I'm willing to do whatever I need to do to fix it. What should I do? I would really like to be up front and tell the insurance companies, but I'm afraid of opening pandora's box of problems.
Thanks in advance.