Employee Layoffs - What Happens Now?
We are receiving a lot of phone calls about employees being laid off and how to handle their benefits. Depending on who your insurance company is and your plan, the options can be different but, here’s the basics of what can happen:
Most insurance companies will keep your employees on the plan through the end of the month. Employers will be responsible for the full monthly premium.
If you have more than 20 employees they may elect COBRA.
If you have less than 20 employees they would be eligible for state continuation.
Employees may be eligible for Medicaid depending on their household income. (Only if your state did the Medicaid expansion.)
Each additional person add $4,420
If their household income is over the Medicaid cut off, they will qualify for Health Insurance coverage through the Marketplace (www.healthcare.gov). They must apply within 60 days of losing their group coverage to enroll. You as the employer, may want to give them a letter on company letterhead stating that their benefits are terming and the date of the termination. This will make it easier for them to enroll through the Marketplace.
When you rehire your employees, depending on your contract, you may be able to rehire them with no waiting period for benefits. Meaning they will be able to get on your Medical Insurance immediately. (This is assuming that you still have a plan in place with some employees on it.) You will want to contact your current broker or insurance company to verify your current rehire waiting period. If your current waiting period is not zero days you may be able to change it.
All of us at Creekstone are here to help people enrolled through the Marketplace and we do not charge for this service. We also have a website where your employees can check on the cost of coverage in the states of Ohio, Michigan and Indiana. We do not collect data from this site and we will NOT call them unless they request a call from us. HealthSherpa Quoting
Just like all of you, we are doing our best to deal with the current situation. And If there is something we can do to help or you have any questions please let us know.