Can You Lose Insurance While on Medical Leave?

Depending on the circumstances, it is possible for an employee to lose insurance benefits while on medical leave. In many cases, however, workers are protected by federal labor standard laws that prohibit an employer from interfering with an employee's insurance and benefits while on qualified leave. The key is to determine if your employer is bound to comply with federal employment and labor standards and if your type of medical leave is legally protected.

Family Medical Leave Act

• The Family Medical Leave Act provides employees with up to 12 weeks of unpaid leave per year for reasons related to the health of the worker or immediate family members. According to the act, an employee's health insurance and other benefits must remain intact during the medical leave. What this means to the employee is that if he takes qualified leave under FMLA, his job will be completely restored once he returns from leave, and his insurance will not be lost while on leave.

  The U.S. Department of Labor indicates that employees who take medical leave have the right to return to their equivalent job with equivalent pay, benefits and other employment terms. However, because federal law only provides protection for 12 weeks, an employee who requires additional time beyond the allotted 12 weeks must make arrangements with his employer for extended job and benefit protection.

Eligibility

• According to the Department of Labor, FMLA applies to all public agencies, all public and private elementary and secondary schools and companies with fifty or more employees. If an employer does not fall into these categories, FMLA does not apply.

  Family and medical leave can be taken in the event of the birth of a child as well as adoption or foster care of a child. Other circumstances that would qualify for medical leave include the care of a spouse or family member with a serious health condition, or if the employee experiences a serious health condition.

Considerations

• Federal employment laws and protections only extend to employees who work for employers bound by the laws. In other words, not all employers are required to comply with federal labor standards. An employee who works for an employer not bound by these laws runs the risk of losing her insurance and benefits if she takes medical leave. Most employers set guidelines that establish the amount of time an employee can take for leave and under what circumstances. The guidelines also determine the extent to which the employee's job functions, benefits and insurance will be protected while on leave.

Other Types of Leave

• Employees can take leave for several reasons besides medical events. Employees may take funeral leave, holidays, personal leave, vacations and jury duty. According to the Department of Labor, employers are not required to pay for time not worked for these types of leaves. If workers are paid while on leave for these events, it is a matter of agreement between the employee and the employer. These leaves are typically short, but if circumstances arise that result in an extended leave for non-medical reasons, employment laws do not provide protection to the employee's insurance or other benefits. It is up to the employer to decide to maintain the employee's benefits and job responsibilities on a case by case basis.