What Happens to Your Health Insurance During a Furlough

If you’re an employer in an organization currently in the middle of a leave or layoff period, it could be challenging to determine the next steps. For instance, you’re not confident about what your company will offer medical Insurance during this period. If they don’t protect employees during unpaid leave, they will have to cover the total cost of their medical expenses until they’re back at work and protected by their employer’s health insurance.

Knowing the rules for your health insurance benefits when taking a leave of absence without pay is essential. It is necessary to know all the details to prepare accordingly.

What Is a Furlough

A furlough is a short-term time off from work, which an employer can institute due to economic reasons. Suppose a company gets forced to lay off employees. The company does not pay you when you are on leave. It is good that when the company can bring its workers back to work, they can return without the need for a hiring process. However, those forced to work without pay will get reassured that they’ll be in a position to return to their jobs later. They’ll be able back with the same post, responsibilities, and pay they previously received.

Layoff or Furlough

Layoffs occur when an employer lets employees let go of an employee. Layoffs can get interpreted as suspension or termination based on the circumstances. What differentiates a layoff from furloughs is the fact that it can get considered to be permanent. There is still the possibility that the employee could return to work.

What Happens to Your Health Insurance When You Are Layoff

If you get fired, you’re not qualified for benefits until you get another job. That means that even if you get covered by health insurance and your employer’s health plan will not protect you until the new employer offers coverage and you have to pay your premiums. What the majority of people laid off to retain their health benefits is to apply to convert their plan. You must make an application in the 90 days following quitting your previous job. Conversion plans cost more, but they’ll protect your needs until you can join the health plan at your new workplace.

What Happens to Your Health Insurance During a Furlough

If you’re planning to embark on unpaid leave, Make sure you are in the know and learn your employer’s policy regarding your health coverage. Specific guidelines stipulate that if you take unpaid leave, you’ll lose coverage during this period. It could be necessary to cover your medical expenses out of your pocket until you can return to work. If this is the situation, you should consider purchasing Insurance, such as the conversion plan, before leaving.

In other situations depending on the company policy, you’ll be able to maintain your health insurance during your absence from working. Make sure you’re still paying your share of the amount you contribute.

How Do You Find Out If Your Business Offers Health Insurance Benefits During the Unpaid Time Off

If your employer offers health benefits available during non-paid time, they will likely give you the details in the event of an unexpected leave. The best way to find out the details is to ask your employer whether they offer this kind of Insurance. If not, then all you need to do is enroll in a conversion plan.

Please get in touch with Ottawa Life Insurance at (613) 454-1424 or email at info@ottawa-lifeinsurance.ca if you need some guidance on Insurance. Our knowledgeable Ottawa insurance agents are ready to help you!