My employee will be going on FMLA what do I need to know?
Simplifying Employee Benefits with ICHRA
At benefitbay, we’re passionate about empowering employers and employees with personalized benefits. Let’s dive into the intersection of the Family and Medical Leave Act (FMLA) and Individual Coverage Health Reimbursement Arrangements (ICHRA).
FMLA Overview
The FMLA is a crucial U.S. labor law that allows eligible employees of covered employers to take unpaid, job-protected leave for specific family and medical reasons. During this leave, employees can maintain their group health insurance coverage under the same terms as if they hadn’t taken time off. Whether it’s for childbirth, adoption, or personal or family illness, eligible employees can avail up to 12 weeks of leave within a 12-month period.
ICHRA’s Role
ICHRA, on the other hand, is an employer-sponsored medical benefit that aligns with FMLA requirements during an employee’s leave period. When FMLA is invoked, employers are obligated to continue their contribution towards the ICHRA.
Employer Contribution
As the ICHRA sponsor, you play a vital role in ensuring that individual premiums are paid during the leave period. The Advanced Reimbursement Checking (ARC) system facilitates seamless premium payments while adhering to FMLA stipulations.
Employee Contribution Management
Managing the employee’s contribution portion during this period is an internal business decision. Consistency is key for all individuals accessing FMLA. Employers have a couple of options:
- Employee Self-Payment: Employees can provide a check per pay period or per month to cover their portion of premiums.
- Employer Coverage: Alternatively, employers can cover the employee’s premium portion and initiate catch-up payroll deductions upon the employee’s return.
Special Considerations
When an individual invokes FMLA due to childbirth, coordination for a Special Enrollment Period becomes essential. New children should be promptly added to both the medical policy and ICHRA elections post-birth.
Feel free to explore more about benefitbay and ICHRA or connect with us via the blue chat icon in the bottom right corner of benefitbay or by emailing support@benefitbay.com! 😊