Tag: COBRA

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….

Question: Must medical coverage continue if we pay severance on a weekly basis for several weeks after the employee has terminated employment? Answer: When an employee is terminated or resigns, benefits end as stated in your summary plan description (SPD), so check your SPD first. This is typically described in most plans as either the…

Question: What is the Consolidated Omnibus Budget Reconciliation Act (COBRA)? Answer: The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or…