FMLA and Layoffs

KMoore1

We gave notice of a layoff to 3 employees -- effective December 31 of this year. Since the notice was given, one employee has developed a serious health condition for which she is entitled FMLA leave. She is currently out on leave and will not return before the layoff on December 31. My question is this -- I know she is not entitled to return to work since her position will no longer exist, but how do I handle health insurance continuation? Is it COBRA? Regular plan continuation under FMLA? Any help would be appreciated!! Thanks.

LadyAnn

You would do regular health insurance continuation from now until December 31, 2007.  After that you would COBRA in the same manner that you do the other 2 employees who were also given layoff notices.