Monday, February 7, 2011

Is Health Insurance Paid By Employer During Unemployment OK? Will That Effect My Unemployment Earnings?

Hi, I'm in Michigan. I'm pretty sure I'm going to get laid off for a while after the first of the year. Perhaps for 3 or 4 months. I'm fairly certain my employer will continue to pay 100% of my health and dental insurance for me while I'm laid off. Will this cause my unemployment benefits to be reduced any? If so, what are my options? Thank You! Russ
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I'm fairly certain if your employer continues to pay for your health and dental insurance, it would violate several laws. They won't be able to write the premium off on their taxes, like they can for employees, AND, the insurer would have to agree to violate the laws governing eligibility for group plans. It's not going to happen. You'll be offered COBRA, which you can take, and pay at your own cost, or not. Even if your employer is your dad, dad's going to HAVE to keep you on payroll, to be able to keep you on the health insurance plan.
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