• Employers must offer group health care continuation benefits to employees on military leave for up to 24 months.
• A fee and the cost of benefits may be charged.
• A notice to the employee must be provided.

Employers must offer employees on military leave group health care continuation benefits similar to those of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). This benefit must be offered for 24 months, and employers may charge the service member as much as 102 percent of the cost of coverage. (The 102 percent figure consists of paying for all of the coverage and a two percent administrative fee.)

In addition, the Health Insurance Portability and Accountability Act (HIPAA) gives the departing employee, and the employee’s family, the right to enroll in another health insurance plan immediately, regardless of the plan’s enrollment period.

If the employee’s military leave lasts for less than 31 days, employers must continue to pay the company’s portion of the premium. Generally, employees would pay their portion of the premium.

When an employee returns from service, employers must reinstate health insurance coverage without any waiting period or exclusions for preexisting conditions, unless there would have been waiting periods that would have applied even if the employee had not been absent for uniformed service. This rule does not apply to the coverage of any illness or injury incurred in, or aggravated during, performance of service in the uniformed service.

The employee needs to receive a notice explaining the employee’s rights under the plan.