Understanding the laws and regulations that come with an employer/employee working relationship can be tricky, but when you add in a leave/extended absence the problem with continued health insurance coverage can be even more tricky. Stan Hill of the National Law Review explores the legalities of the situation, whether you are an employee or an employer.
Key Takeaways:
- If an employee exhausts FMLA leave or is otherwise not eligible or entitled to FMLA leave, the employer’s obligation to continue paying its share of health insurance premiums stops.
- COBRA gives employees and their qualified beneficiaries the opportunity to continue health insurance coverage under the company’s health plan at the employee’s expense when a “qualifying event” would normally result in the loss of eligibility.
- Whether or not an employer must continue health coverage under the FMLA or provide continuation coverage under COBRA or a similar state law, the reason for the employee’s absence could trigger other obligations or sources for payment of medical expenses and insurance premiums.
“If an employee exhausts FMLA leave or is otherwise not eligible or entitled to FMLA leave, the employer’s obligation to continue paying its share of health insurance premiums stops.”
