H&W: USERRA

Uniformed Services Employment and Reemployment Rights Act

When employees leave their job to perform military service, they have the right to elect to continue an existing employer-based health plan coverage, including dependent coverage under the Uniformed Services Employment and Reemployment Rights Act (USERRA).

Covered Plans

USERRA applies to virtually all U.S. employers, regardless of size.

• Its health plan provisions apply to medical, dental, and vision plans, health FSAs and HRAs.

Notice

Employers must provide to persons entitled to the rights and benefits under USERRA, a notice of the rights, benefits and obligations of such persons and such employers under USERRA.

• Employers may provide the notice, “Your Rights Under USERRA”, by posting it where employee notices are customarily placed.

Click Here for a model poster.

Employers can provide the notice to employees in other ways that will minimize costs while ensuring that the full text of the notice is provided (e.g., by handing or mailing out the notice, distributing the notice via electronic mail, or including it in the Summary Plan Description).

USERRA Provisions

Under USERRA, individuals performing military duty of more than 30 days may elect to continue employer sponsored health care for up to 24 months; however, they may be required to pay up to 102 percent of the full premium.

• For military service of less than 31 days, health care coverage is provided as if the service member had remained employed.
• Even employees who elect not to continue coverage during military service have the right to be reinstated in an employer’s health plan when they are reemployed, generally without any waiting periods or exclusions (e.g., pre-existing condition exclusions) except for service-connected illnesses or injuries.

Additional Resources

Click Here for the Department of Labor Web Site.

Heroes Earnings Assistance and Relief Tax (HEART) Act Guidance Notice 2008-82