Can insurance drop you before a termination? ?

I was terminated from my employment on 10/1/2011. I had surgery on 9/12/2011 and the medical insurance company claims that my coverage was dropped on 9/11/2011. I am in Pennsylvania and my insurance was through my work. Is this legal? I was on company approved time off when the surgery occurred, so I was still legally employed and paying my premiums.

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