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.

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.