This does not appear to be correct. You cannot be required to pay for a service or benefit you are not receiving, and conversely, if you pay for something, you are entitled to the benefit for which you are paying. Neither your employer nor the insurer has the right to pocket your money withoout providing what you are paying for. If you wish to pursue this matter, contact the NYS Dept. of Financial Services: that's the agency which generally regulates health insurance in your state. They can either help you or, if some other agency is more appropriate (e.g. the state labor department) can direct you to it. Good luck.