insurance while on active duty

mushroomHR

I just want to confirm that it is OK for an employer to terminate an employee's health coverage and offer COBRA when an employee is called up for active duty. Does anyone know of any regs contrary to the above? Thanks.

POPEYE

From a legal standpoint, yes, you can terminate but MUST offer Cobra at no more than a 102% premium charge.

Most of our service men and women have found that the Government Insurance is much cheaper and has similiar coverage and that has been the way most of them have gone.

System

Good question! Here are my two cents worth -- this person's rights are covered by the Uniformed Services Employment and Reemployment Rights Act, which gives him or her the right to up to 24 months of continuation health coverage while on active duty. You can charge 102% of costs if the person will be gone for more than 30 days. If 30 days or less, the person pays only what they would have paid while actually working for your company. And while on active duty they also must receive the same benefits you give to others who have been laid off or are on non-military leave such as jury duty or educational leave. I obtained much of this information at [url]www.esgr.org[/url], a good resource for employers of guard members and reservists.

WT

Perhaps I nitpick, but leaving for military duty is not a COBRA event and does not qualify the person for COBRA coverage. USERRA has regulations that state that the employer must permit the person to stay in employer provided insurance coverage at 102% of the premium. As such it mirrors COBRA, but it is not COBRA. Further, this cannot be done until the person has been gone 30 days. The U.S. Department Of Labor has a USERRA Advisor page that is useful. Go to the DOL Home page and go to elaws Advisors and then USERRA Advisor. ([url]www.dol.gov/elaws/vets/userra[/url])

Reemployment rights, vacation, and other issues can be looked at as well. You will want to know these things when your employee returns.

pork1

WT: It is a matter of words for simplicity of explanation COBRA provisions in our company policy and Procedures align with USERRA Health Benefit Section, which provides for Health Benefit Continuation under the exact same conditions and procedures for COBRA. It even goes on to incorporate employers who because of "size" (less than 20 employees) would not otherwise be required to offer current health benefits continuation under COBRA, must do so. So while USERRA does not dictate COBRA coverage, the provisions are required for all employers regardless of size if they have a medical health plan in place when the service person goes active duty, it must remain in effect until the service person elects to not have the coverage. It is one of the same and the employers must offer whatever medical benefit plan is in force at the time the individual goes active duty, regardless of the 30 days departure, the service person must still pay his/her premium, if for less than 30 days.

It is true that the service connected medical coverage is much cheaper and I know of no service member retaining the employer program. Only in the case of some previous exsisting condition and preferred care would I encourage a service member/employee to keep employer coverage. Additionally, I know of no previous exsisting conditon case situation where the service medical services refused to pick up medical care. There maybe one, but I certainly have not heard of one.

I have been wrong before!

PORK

WT

It is a matter of words. However, words and technical issues make up our careers. COBRA is a distinct statute with various rules and regulations. USERRA is another statute with its own rules. While coverage mandated is similar, it is not identical. (For instance the USERRA mandated coverage time period is longer). Further, the recipient has alternative coverage (Tricare). It is nitpicking, however, somebody that does not understand could rely on the COBRA statute to their detriment. It is better to understand what set of laws one is dealing with and why.

pork1

MUSHROOMHR: Not only is it OK, it is required by USERRA. If you have not gotten a resent copy I would contact The Department of labor in your state and get a free copy or use the WWW to research USERRA in a google and you will have more information there than one can read in a few minutes. It one of the more dangerous areas in an HRs life (these days while the armed forces are fighting a declared war you do not want the opportunity to face a jury what so ever) and can get you and the company in big "HOTWATER", if not followed to the letter of the law.

PORK

TN HR

This may be slighlty off-topic, but good information regardless. There will be some citizen soldiers who will opt for both coverages. I have found this to be the case particularly when there are extraordinary medical care issues, etc.

Make sure your employees understand that TRICARE (the name of the military insurance plan; Formerly known as CHAMPUS) will ALWAYS be a secondary payer.

Just an FYI.

Gene