Employers Required to Provide for Health Benefits
for Military Reservists Called to Active Duty

ORANGE, Calif.--(BUSINESS WIRE)--Sept. 20, 2001--As members of America's military reserves are being called to active duty, employers around America are being reminded of their obligation to continue to provide group health insurance for these servicemen and women and their families while they are away serving our nation.

Under the Uniformed Services Employment and Reemployment Rights Act (USERRA) of 1994, a group health plan must provide up to 18 months of continuous group health coverage to employees on uniformed service leave. This coverage also applies to any of their dependents that were covered under the plan at the commencement of the employee's leave. In contrast to COBRA, USERRA applies to all employers regardless of their size.

USERRA provides that if the period of military service does not exceed 31 days, the employer may charge the employee for coverage only to the extent that the employee would have been charged if employed. If the leave period exceeds 31 days, the employer may charge up to 102 percent of the full premium for coverage under COBRA and 110 percent of the full premium under Cal COBRA.

"Employers must also be aware that those who are called up for active duty in the armed forces may be covered under the Civilian Health and Medical Program of the Uniformed Services," said Procuniar. CHAMPUS does not permit an employer to terminate COBRA coverage for having CHAMPUS coverage.

More information on the military leaves of absences and re-employment rights is available on the Associated General Contractors of America web site at www.agc.org/content/public/PDF/Legislative/Military_reservists.pdf