Tag: COBRA

Question: A terminated employee took COBRA for the health FSA. Can he stop making after-tax COBRA contributions after three months, then just keep paying the 2 percent admin fee and continue accessing the account? Or does he have to make full contributions in order to use it, even on COBRA? Answer: Health flexible spending account…

Question: When an employee is on leave and chooses not to elect COBRA continuation coverage, can he continue coverage when he returns? If he does not return and terminates employment, can he elect COBRA based on a termination date separate from the leave period? Answer: Check your health care plan document to determine how the plan handles…

Question: We have an employee who recently went out on a workers’ compensation injury and we do not know when she can return. We have filed all of the paperwork for workers’ compensation and she is receiving benefits for the work-related injury. Does she still need to pay for her health benefits (family coverage) while…

Question: When our employee’s employment was terminated, we agreed to pay COBRA premiums through a specified time frame as part of the severance agreement. That time period is about to expire. How should we communicate to the former employee that the terms of agreement are coming to an end and he will be responsible for…

Question: How does USERRA protect an employee when he or she leaves to serve in the military, and when does COBRA eligibility start? Is there an extra 30 days under the employer’s active plan? Answer: The Uniformed Services Employment and Reemployment Rights Act (USERRA) provides for health benefit continuation for employees who are absent from…

Question: We sold one of our companies and all of our former employees moved to the new company. At the time of the sale, we offered one employee the option to return to us once we open a new facility (in about a month), and both the employee and the successor company agreed to this…

Question: When an employee is on a leave of absence (LOA), must the employer continue health insurance or is this a COBRA event? Answer: It would largely depend on the type of leave of absence (LOA). If it is a qualifying Family and Medical Leave Act (FMLA) leave, the answer is yes, the employer would…

Question: How long can a terminated employee remain on COBRA in California? Answer: The answer depends upon the employer size, and the maximum amount of time for a terminated employee in California is 36 months. California’s Continuation Benefits Replacement Act (Cal-COBRA) applies to employers and group health plans that cover from 2 – 19 employees….