If You're Sick, How Long Before Your Employer Cuts You Loose?

[Nwit]

If someone becomes seriously ill, heart attack, stroke, cancer, how long will an employer keep paying a salary? 3 months, six months, a year?

Then what, COBRA? Health insurance premium of $250 a month becomes $1,000 or more? (husband, wife, 2 children) 9 month subsidy of 65%.

So the guy gets sick, is laid off, COBRA kicks in, and after 18 months no insurance.

Have I got this right?

Comments please.

 

[Norwayguy]

If someone becomes seriously ill, heart attack, stroke, cancer, how long will an employer keep paying a salary? 3 months, six months, a year?

Then what, COBRA? Health insurance premium of $250 a month becomes $1,000 or more? (husband, wife, 2 children) 9 month subsidy of 65%.

So the guy gets sick, is laid off, COBRA kicks in, and after 18 months no insurance.

Have I got this right?

Comments please.

I don't think their is a standard response and each employer would be different....Case in point I am not an employee but an independent contractor working with an agency...I have had some back issues this summer and have not run as many appointments as normal and my production has fallen off...I've been getting weekly calls and am quickly looking for an exit from my contract before I get terminated for cause (not meeting sales goals) makes a big difference in my contract, and this after spending 8 years with the agency and still having about 4 Million in flowing premium...just not enough "new premium" (even thought I mainly sell level commission products so the branch is still recieving the same income from my block).

 

[stormtracker]

If someone becomes seriously ill, heart attack, stroke, cancer, how long will an employer keep paying a salary? 3 months, six months, a year?

Then what, COBRA? Health insurance premium of $250 a month becomes $1,000 or more? (husband, wife, 2 children) 9 month subsidy of 65%.

So the guy gets sick, is laid off, COBRA kicks in, and after 18 months no insurance.

Have I got this right?

Comments please.

You are not "laid-off" if you were let go while on sick leave. The employer is under NO obligation to continue paying in this scenario. Typically, an employee is required to exhaust all personal time (sick days, vacation, etc...) before eligibility for short term disability kicks in-- if offered. The next benefit is long term disability-- again, if offered. An employee who is let go while out on sick leave, whether covered or not, has been discharged. Eligibility for paid leave, outside of these parameters, is strictly up to the employer. COBRA has a set of eligibility requirements, all it's own, which have been addressed at length in other threads. If said employee elects eligible COBRA coverage, the FULL cost of premium is then absorbed by the employee.

 

[souldeux]

And once your eighteen months of COBRA runs out, you can always go hippo and convert it to an individual plan.

 

[Full Throttle]

Some states will allow you to stay on "COBRA" indefinetly if the result of a disability.

 

[atlantainsguy]

Other than the difference between STD, LTD, and the medical insurance as pointed out -- a classic example of the USA lacking an adequate "safety net" for its citizens, compared to the other industrialized societies. If that was one of your points, you did it in a very creative way.

atlantainsguy

 

[stormtracker]

Other than the difference between STD, LTD, and the medical insurance as pointed out -- a classic example of the USA lacking an adequate "safety net" for its citizens, compared to the other industrialized societies. If that was one of your points, you did it in a very creative way.

atlantainsguy

The often skimmed over aspect of COBRA is the cost. Very few "unemployed" can afford the premiums. Thus, they lose coverage altogether. Another problem with COBRA is it's slow-pay tendancies-- when I had to take it years ago the premium you paid in any one month was only paying current-- you actually needed to double-pay one month to actually have "live" insurance...