Leave of Absence and COBRA
As for having to go on COBRA due to a leave of absence, this is done at the employer’s discretion, but all employees working for that company must be treated equally in regards to this. In your employee handbook, there should be a section that addresses the continuation of employee benefits in the event of a leave of absence. The reason that an employer requires COBRA election during a leave of absence is because they do not want to be liable for the employer’s contribution toward premium payment during your absence. The cost of paying your health insurance premium becomes your sole responsibility under COBRA. One week of absence is a bit on the low side for an employer to request a COBRA option. The standard seems to be 2 weeks, but this is determined by the employer if an employee does not qualify under FMLA, not by federal regulation. Once you are re-hired, there will likely be a waiting period before you can go off COBRA and have your employer begin making a contribution to your health insurance premium. This should also be addressed in your employee handbook. The waiting period for a re-hire is usually less than that of a new hire, and in many cases, the waiting period is waived completely if the re-hire is within a specific period of time. 3 CommentsLeave a comment |
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I have just been taken off work for pnuemonia for two weeks. My employer informed me that after seven days off I would have to go to Cobra and that it was Federal Law. I have never heard of such a thing. I would like to know if this is accurate. They stated it was due to the fact that I had been insured with the company for less then a year.
Your employer is probably referencing the Family and Medical Leave Act when he mentions that you have been insured with the company for less than one year. Under the FMLA, an employer is required to maintain coverage under the group health plan for any employee that takes leave due to a serious health condition. This must be granted for 12 weeks during any 12 month period. Since you have not worked for the company for 12 months, FMLA does not apply to your situation. Here is a link to some helpful 
If someone who has COBRA at the subsidy rate is then rehired at the same job (& will be eligible soon for company health benefits), is he/she still eligible for COBRA at that rate, or would the employee have to pay the full price of the COBRA insurance?
Comment by R.M. — June 17, 2009 @ 10:50 am
If you are rehired by the employer, you go back on the group plan and off COBRA. The COBRA subsidy program is designed to assist those that are unemployed maintain their health insurance. Your employer will now become responsible for the majority of your premium
Comment by Moderator — June 18, 2009 @ 11:59 am
Hi. Do you know if there exists any exceptions for the Family Medical Leave Act? I am thinking of the state of Pennsylvania here and how it relates to my situation and for the company that I work for. My husband and I are in the beginning of the long process of adoption, but we already have decided that I will take time of from work when our baby arrives and comes home with us. I know there are some exceptions to the Family Medical Leave Act in some states, isn’t that so? I haven’t been able to find out yet, so maybe I am wrong? Is it any different for adoption? Thanks for helping out, that’s one less worry! Next is to find child insurance.
Comment by Mary — June 23, 2009 @ 11:55 am