As an employee, what happens to your health insurance policy while you are on medical leave?
As an employee, what happens to your health insurance policy while you are on medical leave? Well, that depends on different factors. This article discusses what you should know about your health insurance while on a medical leave of absence.
Your Medical Insurance Continues Under FMLA Leave
So, what happens? The Family and Medical Leave Act, or FMLA, allows employees to receive up to twelve weeks of unpaid medical leave for a severe medical condition within the same year without losing their jobs. In addition, your qualification for FMLA varies on numerous factors, including:
- Your durability in working for the company
- The employee count at your business
- Whether you had previous medical leaves within a year
If you have a health insurance policy through your employer and use your FMLA leave, your company must continue your medical insurance as if you were currently working. That means you will continue contributing to the insurance premiums as you previously did. Also, you will have to pay the employee part of the premiums to maintain coverage if they were typically deducted from your paycheck, but your medical leave is unpaid.
While on STD or LTD Leave
Although it’s not mandatory, some employers provide health insurance while an employee is on short-term (STD), or long-term disability (LTD). However, these benefits don’t cover the cost of their insurance premiums. Instead, STD or LTD policies pay a part of your income while you can’t work.
Moreover, you must review the employer’s benefits or policy handbook to confirm your health insurance policy status while on short-term or long-term disability. Remember that an employer can maintain an employee’s health coverage for a short time. But they must consistently follow and apply its written policies.
You Must Be Able to Apply for COBRA
Apart from certain small companies, the federal government, and church organizations, employers must allow their employees to apply for the Consolidated Omnibus Budget Reconciliation Act or COBRA. Additionally, this is only if you lose your health insurance policy due to your medical leave. Plus, you have 1.5 years of extended COBRA coverage if you lose your medical insurance policy because of your medical leave of absence.
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