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Health insurance while off sick
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Health insurance while off sick
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
I have an employee that is off work due to doctors' orders. She is not eligible for FMLA. My company pays 100% of our health insurance, but can I have the employee pay for her insurance while she is n
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Forums » Topic Forums » Legal Forum » Health insurance while off sick
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Health insurance while off sick
posted at 6/15/1999 9:18 PM EDT
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Posts: 36
First: 6/15/1999 Last: 12/8/2010 |
I have an employee that is off work due to doctors' orders. She is not eligible for FMLA. My company pays 100% of our health insurance, but can I have the employee pay for her insurance while she is not working and being paid? |
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Health insurance while off sick
posted at 6/16/1999 6:22 PM EDT
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Posts: 2217
First: 6/16/1999 Last: 12/13/2001 |
It depends. A few comments are in order.
FMLA: You say that the employee is not eligible for FMLA coverage. (If she were eligible, the FMLA would require her to be covered under the same terms.) COBRA: Remember, under COBRA, if coverage lapses, an employer or plan administrator has an obligation to give notice of the right to continue coverage at the group rate. There is also a grace period built in there. OTHER POLICIES: In addition, you should take a look at your internal policies and writings. How do you define sick leave? Is this a sick leave or an extended unpaid leave of absence? While the leave does not qualify under the FMLA, is it covered under workers compensation laws, short or long term disability statutes, a collective bargaining agreement or some other statute. Assuming that this is a long term unpaid leave of absence, you should also consider whether the employee is covered by the ADA. THE PLAN: Frankly, I think it would be wise to consult with a labor and employment attorney regarding this point. If this is a long term unpaid leave under a discretionary leave policy (and no other statutes apply), I think you might be able to require the employee to pay the premium. My concern would be that because the employee is not providing any services to the company, that the employee MIGHT NOT BE ELIGIBLE for the insurance in the first place. (Otherwise, why couldn't I start a "company," get a great health insurance plan where the "employee" pays 105 percent of the premium costs, and then "hire" a bunch of people and put them in a non-pay status, and pocket the difference as an administrative fee?) If you purport to continue coverage when the employee is not eligible for coverage and you turn out to be wrong, do you owe the employee for coverage? (Image this - - Employee not eligible for plan. Employer "arranges" for coverage. Employee has serious medical bills. If health plan does not cover them, employee sues employer for misrepresentation. If health plan does cover them, plan sues employer for misrepresentation. Lawyers win!) I would speak to a lawyer. |
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