If an employee pays insurance premiums in the month and then terminates employment, is the employer required to carry the insurance through the end of that month?

Or is it legal to cancel insurance on the last day of employment?

Asked on August 29, 2013 under Employment Labor Law, Montana


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

1) Premiums are generally pre-paid, so they would cover that whole month.

2) More  importantly, the coverage cannot be cancelled immediately, because that would violate COBRA--the federal statute allowing an employee to continue his/her coverage by taking over payment of the full premium. Both employers and employees should look under COBRA at the U.S. Department of Labor's website for more information on what happens to insurance coverage at termination of employment.

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