Administering Health and Welfare Benefits for Employees on Leaves of Absence

Administering health and welfare benefits for employees who are on leaves of absence can be challenging, even for the most seasoned benefit administrators. Employee leaves are frequently the result of tragic incidents affecting employees or their family members. Because of this, employers often want to provide as much assistance as possible, and don’t want to impose the additional burden of losing benefits. However, this is an area where the phrase “no good deed goes unpunished” frequently rings true.

In this workshop, we will discuss legally required continuations of health and welfare benefits during leaves, and the problematic issues that employers should be aware of in situations where the employer wants to voluntarily extend coverage. For example, if an employer relies on the “look-back measurement method” to determine who is full-time for ACA reporting purposes, the employer may be required to continue to offer coverage to employees who are on extended leaves of absence, even if not protected by the Family Medical Leave Act, in order to minimize penalties. If the employer’s plan eligibility rules mirror the look-back measurement period this can present a problem if this continued eligibility for an inactive employee isn’t allowable under the employer’s contract of insurance or stop-loss agreement.

Additionally, employers may want to continue an employee’s group term life insurance coverage past an employee’s FMLA-protected leave, but this can violate “actively-at-work” provisions that are frequently found in group term life insurance contracts.

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  • Event Details
    March 28, 2019
    8:00 am - 11:30 am

Agenda: Thursday, March 28

8:00 – 8:30 am Registration and Breakfast
8:30 – 11:30 am Workshop Presentation