UnderCOBRA law, when an employee or dependent has a "qualifying lifeevent" that causes the loss of health insurance coverage, they haveat least 60 days to choose if they want to continue coverage.(Photo: Shutterstock)
The current economic situation caused by COVID-19 safetymeasures has millions of people wondering how they can keep theiremployer's health insurance plan. Companies have been forced tofurlough or layoff their workforce until the economy improves. Infact, the U.S. economy lost more than 20 million jobs in April. Assuch, people want to know whether or not they can sign up for COBRAcontinuation coverage and if they will be able to afford it.
What is the difference between a furlough and alayoff?
While they may seem similar, there is a difference betweengetting furloughed and being laid off.
A furlough is usually temporary, with aspecific end date. However, a company can extend the furloughbeyond the initial period or later convert it into a layoff. Duringa furlough, the employee experiences a forced, unpaid leave ofabsence, but is still considered an employee.
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