|
Employers Must Provide For Continuation Of Health Benefits To Reservists
America's military reservists being called to active duty need not worry about losing their employer- sponsored health insurance while away. Thanks to two government programs designed expressly for situations like these, employers around the country remain obligated to continue to provide group health insurance for servicemen and women and their families who are participating in Operation "Iraqi Freedom."
The USERRA and CHAMPUS programs protect employees and their families by making sure that insurance coverage remains uninterrupted. In times like these it is important that both the employer as well as the reservists be aware of how they are affected by these important health coverage laws.
Under the Uniformed Services Employment and Reemployment Rights Act (USERRA) of 1994, a group health plan -- regardless of its size -- must provide up to 18 months of continuous health coverage to employees on uniformed service leave. This coverage also applies to any dependents that were covered under the plan at the commencement of the employee's leave. USERRA does not specify the manner in which employers must provide notice of continuation of coverage nor does it affect the operation of other federal laws, such as COBRA. For plans to which COBRA or specific state COBRA regulations apply, the plan administrator should provide the same notice that it normally would to qualified beneficiaries.
If the period of military service does not exceed 31 days, USERRA provides that the employer may charge the employee for coverage only to the extent that the employee would have been charged if employed. If the leave period exceeds 31 days, the employer may charge up to 102 percent of the full premium for coverage under COBRA or what is prescribed in prevailing state COBRA regulations.
Military reservists called up for active duty in the armed forces may also be covered under the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS). This program does not permit employers to terminate COBRA or state-specific COBRA coverage; and, similarly, insurance carriers may not terminate COBRA coverage for reservists and/or their families on the grounds that they have other coverage under CHAMPUS.
|
|
