You and your wife should consult with an attorney. If the employer deducted the premiums but failed to pay them to the insurer, then the employer would seem to be liable to you, under one or more of the following theories: breach of contract (violating the "agreement" under which your wife works), negligence (being unreasonably careless), fraud (if it misrepresented about coverage), even possibly an intentional tort (it if deliberately, not accidentally, failed to pay the money). If liable, the employer would likely be liable for *all* medical costs which you incurred which should have been covered by insurance during the time your coverage was canceled for nonpayment (it would not need to reimburse you what you would have paid out of pocket, such as through copayments or deductibles, however). It is worth speaking with an attorney to explore a lawsuit.