• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Should a company continue to pay medical insurance after layoffs?

by on
in Admin Pro Forum

Question: “I need help in revising our current policy on continuation of medical insurance during the following cases: temporary layoff, permanent layoff, workers’ comp. Currently, the employer pays 100% of employee insurance benefits. Any advice would be appreciated.” — Anonymous

See Comments below

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/14991/should-a-company-continue-to-pay-medical-insurance-after-layoffs "

{ 3 comments… read them below or add one }

Jocelyn November 3, 2008 at 9:42 am

COBRA, where they stay insured through the company and they are responsible to make timely payments to you for the cost of the coverage plus some companies choose to charge 2% extra for the paperwork and employee time to take care of that, we choose not to. But people are sometimes “bad” at paying and you need to be on top of that so you do not get stuck with the bill, keep a copy of the letters you send to the ex-employee as well jsut in case.


Mark October 31, 2008 at 5:32 pm

Only once did we have to lay someone off. No benefits were paid other than the mandatory state-equivalent of COBRA. (We are too small for COBRA, but Illinois has a similar law for smaller employers.)

For worker’s comp, we continue to pay all benefits as if they were still working.


KNL October 31, 2008 at 2:01 pm

At our company, our policy states that if the employee is out on Workers Compensation, they retain the same benefits as if they were still employeed with their regular position. (This can vary between part time and full time employees.) As far as layoffs are concerned, temporary layoffs retain their benefits for 60 days. Permanent layoffs retain benefits for 30 days. Beyond that, they are generally eligible for COBRA coverage.


Leave a Comment