Medical Benefits while on Military Leave of Absence If an individual is covered under a health plan and that person is absent from employment because of active duty, the plan must allow the person or his or her dependents to elect to continue the coverage. Under USERRA, all employer-sponsored health care plans are required to provide COBRA-type coverage for up to 18 months after the employee's absence begins due to military service or for the period of uniformed service. However, the Veterans' Benefits Improvement Act of 2004 (VBIA) modifies elections that are made on or after December 10, 2004.

The VBIA extends the maximum period for which an employee may elect to continue employer-sponsored health insurance coverage to 24 months. The maximum period of coverage for such an employee and their dependents is the lesser of 24 months beginning on the date the employee's absence began or the day after the date on which the employee failed to apply for, or return to, a position of employment. Premiums must be paid for any continued benefits. The continuation option is similar to COBRA in that the employer may charge up to 102% of the full cost of the plan. Individuals on active duty for less than 31 days cannot be required to pay more than the employee share, if any, for the coverage. Should an employee while serving on active military leave decline coverage, no exclusions or waiting periods may be imposed upon the individual or on his or her dependents, upon the return from service. Returning to work after active duty: Under the USERRA, (Uniformed Services Employment and Re-Employment Rights Act) provides the following time limits for an employee to return to work after a military leave of absence: 1 to 30 days; employee must return to work the beginning of the next regularly scheduled work day following completion of service and expiration of an 8-hour rest period after safe transportation home. 31 to 180 days; application for reinstatement must be made not later than 14 days after completion of military duty. 181 or more days; application for reinstatement must be made not more than 90 days after completion of military duty.