Health and Dental Coverage for Disabled Employees

When one of your employees becomes disabled and has been approved for Long Term Disability the employer needs to decide what happens with their health and dental benefits. As an employer, there are a number of questions to consider, such as:

  • Should health and dental benefits terminate for an employee who becomes disabled?
  • Will the cost of carrying the benefits for the disabled employees impact your ability to provide a competitive and affordable program for active employees?

If you have decided to continue health and dental benefits, then you need to consider the length of time you are willing to provide these benefits for disabled employees. Some options to consider are: 

  • Continue the benefits on the same basis as if the disabled employee was an active full time employee 
  • Provide benefits for a disabled employee for a specific period of time
  • Provide benefits based on a graded schedule, based on years of employment. A sample schedule could be similar to the following: 

Things to note when considering the continuation of health and dental benefits: 

  • Employees can be required to continue to pay their portion of the health and dental premiums
  • In order for an employee to be removed from the plan all together, the employee must be terminated 

For more information on extending health and dental benefits, please contact our office.