FEBRUARY 2003
QUESTION OF THE MONTH
Q.
One
of our employees is being activated for duty in the National
Guard. How do we handle his medical insurance benefits?
A. Both
state and federal statutes provide for a "COBRA"-like
medical insurance continuation if the employer ceases medical
coverage during extended military leave.
At
the onset of military leave, employers must continue the regular
medical insurance program for 30 days. After 30 days, if the
regular medical insurance is not continued, the employer must
offer up to 18 months of continued coverage. The employer
may charge the full cost of the coverage plus two percent
for employer administrative expenses. If the military leave
lasts the 18 months, employers must then offer the regular
18 month COBRA continuation coverage.
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