COBRA and FMLA

[Guest Arowe]

If during an unpaid FMLA absence an employee fails to make payment for benefits.......

1. May the employer cancel the benefits?

2. Would that then be a qualifying event for COBRA?

[Sandra Pearce]

If you notified the employee of the obligation to pay the employee portion for the health coverage while on the unpaid FMLA leave, and if you give the employee 15 days notice of cancellation of coverage you may cancel the coverage. You may not cancel it retroactively. This is not a COBRA qualifying event. The employee must be reinstated (not retroactively) to the health plan upon return to employment (during the FMLA leave period). If the employee does not return to employment at the end of the FMLA leave period that would be a qualifying event (not retroactively to the date of loss of coverage for non-payment).

[Mary C]

According to FMLA regualtions, if employees on other types of leave who do not maintain payments have their coverage canceled retroactively to the day the last payment purchased coverage, you may also cancel coverage retroactively for those employees on FMLA leave who do not maintain payments provided you provide the 15 day notice that you are going to do so.