Can an employer cancel your health insurance, after you have put in a claim on the insurance? Insurance will not pay claims now.

Had not worked much prior to Christmas, so I signed on unemployment, stating reduced hours, employer said I could not do that because he had not let me go, but I was able to get unemployment because of reduced hours. I still called my place of employment every day, and they would say they had no work. I am a journeyman plumber. On jan 4 2009 I was admitted to the hospital, and went into rehab for pain pill use on Jan6 for 2 weeks. My insurance was checked at the time by these hospitals and the insurance was good so I preceeded to rehab. During the time in rehab on or about Jan 9 received a notice from my employer that I had the option to pick up my insurance, or lose it, as of 12-31-08. It stated on the papers as not employed anymore. He never fired me or told me I was let go. Now the insurance claims have been denied, and full bills have been sent to me. Is this legal to do after hospitals checked your insurance. Do I have any rights? - Is this your question? Add additional information