Can employer take away health insurance when on worker’s compensation?
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Asked June 20, 2011
Employers are prohibited by law from taking any sort of punitive action against an employee because they are out of work on a Workers Comp claim or medical leave. Since your eligibility for health insurance is often through the employer, taking away your health insurance coverage while you are out of work could be considered a punitive action, and is not allowed.
On the other hand, if you fail to make your health insurance payments while out on a Workers Compensation claim, your insurance can be canceled due to lack of activity. As long as your payments are made, your employer's contribution will be made as well, continuing the benefits of working for that company even though you have been injured. Being out of work because of injury or illness does not excuse you from making the required health insurance premiums, and failure to do so could result in losing your employer sponsored health insurance coverage.
Workers Compensation is intended to protect you and your employer from financial difficulties if you are hurt on the job. It pays for medical treatments and pays a fraction of your regular income. It is required by federal law for many workers, and cannot be canceled or denied. It does not take the place of your regular health insurance outside of the workplace, and should not be considered a replacement for traditional health insurance coverage, only a supplemental income and medical treatment to prevent financial ruin when you are injured in the workplace and unable to perform your job for a period of time.
Answered June 20, 2011 by Anonymous