Was this in California around 2008? There was a big scandal about this and now there are big fines for doing it.
A few insurers were accepting people (and accepting payment) without actually setting them up in the system. When many of these people went to use the insurance, they were told that not only did they not have insurance, they would be denied any insurance for having pre-existing conditions.
My favorite is the HR person who says "we can correct any errors that were made with your insurance retroactively, don't worry"
I am worried, though! Because I've got this deduction coming out of my paycheck for insurance, and your insurance provider just told me that they've never heard of me! Escalate!
I found this out the hard way in the ER mid near fatal allergic reaction
So yeah, you'll be fine...