What about disability & COBRA?

KathiHR · March 2004

I'd like to hear what other companies do when someone goes out on unpaid leave due to sickness (not workers comp). Do you continue to provide insurance or do you transfer them to COBRA? If you keep them on your insurance, how do you collect their portion of the premiums?

We were in the middle of revising (& some adopting for the first time) our benefits & policies concerning disability, unpaid leave, etc. Today, we got word that a 6-month pregnant employee had to have an emergency C-section and is very sick - will take months to recover, not to mention the 3 month premie baby. Her husband is already calling wanting to know if we're going to continue paying her.......continue paying someone who won't work for months????? I feel really bad for this young family, but she has only worked for us for 7 months & used all her PTO as she got it. Fortunately, she listened to my benefits lecture about preparing for your future & took out AFLAC disability. No matter what we do, we'll come out of this looking cold-hearted.

Kathi

Balloonman · March 2004

First off..............she will qualify for FMLA, and during that time, he insurance will stay in place. You must work with her to determine how her portion will be paid for. I just terminated insurance coverage for an employee who has not been making his portion of the insurance premium payment. He is on WC, health insurance indicated that it will be reinstated when he returns to work. Not sure about the other coverages. FMLA requires you provide a 15 day notice of cancellation. I did this every week for 6 weeks....... every payment was made the day he would have had coverage terminated.
This is really a workable situation for you. Oh crap just realized she does not qualify for FMLA. Shoot. Hmmmmm well what has your past practice been? Yeah you have to decide if you want to continue carrying her as an employee or term her. Dang, glad I am not deciding that. Look at your past practice, if this has been a good employee, and you have not let people go with legitimate medical leaves in the past, regardless of FMLA, then work out making sure the insurance is paid for.............she at least took out disability.
My $0.02 worth.
DJ The Balloonman

Carey · March 2004

I agree that you need to look at your past practices if you don't have a specific policy to guide you. Our company continues health insurance for employees on either paid or unpaid disability leave. We put them on "self-pay" and have them mail in a check each month for their portion of the premium. As to whether or not she is paid, it shouldn't come as a shock to her husband that her leave (if she gets one) will be unpaid. Although her situation is very sympathetic, remember that what you do with her will set a precedent that you will have to be consistent with in the future.

AJ SPHR · March 2004

We have a short term disability plan that covers employees for 26 weeks, as long as they remain disabled. We are self-funded for that plan so we continue to take their pre-tax contributions for health coverage during this time, and also "hold" their position for them. If still disabled after 26 weeks, they are terminated and eligible to apply for LTD. At the end of this 26-week period, we terminate medical coverage and give them option to convert through COBRA.

If you don't have a policy, as others have stated, look to past practices.

What about disability & COBRA?

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