Can my employer terminate my medical benefits while I am out on worker’s comp?

Yes – if there is an employee contribution which is normally deducted from your paycheck, the employer is not obligated to pay the employee’s contribution for medical insurance.  It is not unusual for people to feel betrayed when they find out their employer has cancelled their (and their family’s) medical insurance.  If possible, go onto a spouse or partner’s medical insurance coverage, apply for Medi-Cal, or pay the employee’s COBRA portion in order to continue your medical insurance coverage.

It is important to note, the employer also is not responsible for continuing to pay for benefits that would usually deducted from your paycheck – for example:

  • Medical insurance
  • Flexible Spending Accounts
  • Retirement Contributions
  • Wage Withholding orders for Child Support Payments
  • IRS tax withholding orders

You are responsible for paying for these items directly while you are off work on disability.