COBRA & Workers’ Compensation

February 17, 2021

Must an employer maintain health insurance benefits for an injured employee who is out on Workers' Compensation leave? When can the employee be placed on COBRA?

The interaction of Workers' Compensation, FMLA, and COBRA all come into play in this question.

If the injured employee is eligible for FMLA leave, the employer must maintain the employee's health insurance benefits on the same terms as before the leave.

Once the employee has exhausted the 12 weeks of FMLA leave, the employer can then offer the employee coverage under COBRA.

If the injured employee is not eligible for FMLA, a reduction in hours due to a job-related injury is considered a "qualifying event" for COBRA, if it results in a loss of health coverage. Collective bargaining agreements and other employment policies may affect this right.

Alternatively, the employer may have the option of maintaining health insurance benefits, depending on the terms of the health insurance plan documents.