BAS Blog


 

What is the difference between a furlough and a layoff and how does COBRA apply?

A “furlough” is generally an employer-forced temporary leave of absence after which an employee is expected to return to active employment. The individual is still considered an employee during a furlough. A layoff is a generally a termination of employment where all terms and conditions of employment cease. A layoff could be permanent or temporary, but it is a separation from employment and the individual is no longer an employee.

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Question of the Week

Q.- Our open enrollment is starting next week and we allow our employees to change their medical plan election. Do we have to let our COBRA participants change their elections?

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Question of the Week

Q.- We have a COBRA continuant who is thinking about enrolling in individual coverage through the health care exchange. If she doesn’t like the coverage, do we have to let her re-enroll in our coverage?

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Question of the Week

Q- Under our plan, an individual on COBRA coverage must pay by the first of the month for that month of coverage. Do we have to accept late payments?

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Question of the Week

Q.- An employee on leave wants to cancel her health coverage. Is this a COBRA event?

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Question of the Week

Q.- We are a start-up company, created in April this year. We just hired our 21st employee. Do we now have to comply with COBRA?

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Question of the Week

Q.- We have an employee who is continuing coverage under COBRA due to a reduction in hours of employment. The employee has an FSA and an HSA. Can he pay his COBRA premiums through either of these accounts?

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