Question: How do you handle insurance premiums while an employee is on leave?
Answer by the HR Experts:
How insurance premiums are handled during a leave of absence depends on the type of leave, applicable federal or state law, and the employers benefit plan.
For many job-protected family and medical leaves, employers are required to continue group health insurance on the same terms as if the employee were actively working. This generally means the employer continues paying its normal portion of the premium, while the employee remains responsible for their usual share. For example, under federal FMLA, this coverage must generally be maintained for up to 12 workweeks of FMLA leave for most qualifying reasons.
If the employee continues receiving wages, their portion may continue through normal payroll deductions. During unpaid leave, employers should establish another payment method, such as direct payments or, where permitted, catch-up deductions after the employee returns.
Not every leave has the same requirements. State leave laws may provide additional benefit protections, while personal or other non-protected leaves may be governed by employer policies and health plan terms.
Employers should be cautious about terminating benefits simply because an employee is on leave or no longer receiving a paycheck. Before changing or ending coverage, confirm the applicable leave laws and plan requirements and clearly communicate the employee’s premium payment obligations.
Contact Jinji HR Experts for your specific concerns or other HR information at printcreative@jinjihr.com.
