Continuation of Medical Benefits
The FMLA requires that the employee's group health-insurance benefits be maintained in the same manner they were before the leave. If the company pays 100 percent of the coverage, this remains the same. Otherwise, the amount the employer pays and the amount the employee pays remains the same. The only change may be the addition of a child due to birth or adoption. This may cause an increase in both the employer's and employee's contributions.
If the leave is due to the birth or placement of a child, go to Chapter 14 to read about adding a newborn to the employee's medical-insurance policy. A delay in enrollment can result in a denial of coverage until open enrollment. It is the employee's responsibility to enroll the child, but she will appreciate you following up.
It is obvious that payroll deductions stop when there is no paycheck. When employees are on FMLA leave without pay, have them issue a check to the company each month to pay their usual deductions for medical, dental, and life insurance, as well as other benefits that are affected. Employers are required to continue their usual contribution, too. If an employee is on FMLA leave due to the birth or placement of a baby in the home, the new family member may result in an increased medical-insurance premium. If the employee is sending in a check for her contribution, advise her of the new amount.
