Voluntary benefits are becoming increasingly important to employees as they focus on their physical, mental, social and financial health. As a result, many employers have expanded their voluntary benefits offerings to address employees’ needs and improve their attraction and retention efforts.  Because some of these offerings are disability benefits, it’s more important than ever to understand the differences between short- and long-term disability insurance and COBRA. What are disability benefits? Disability benefits provide guaranteed income or job protection to employees who are unable to work due to serious illness or injury. The most common disability benefits are STD and LTD insurance. However, understanding the differences between short- and long-term benefits and other laws, such as the Consolidated Omnibus Budget Reconciliation Act , can be complicated and difficult for employers to navigate. This article provides a general overview of STD, LTD and COBRA and explores how b...

The Consolidated Omnibus Budget Reconciliation Act is a federal law that gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods (usually 18 months) under certain circumstances. Most employers are required to provide an opportunity to continue group health coverage and are aware of their COBRA obligations with respect to their health insurance plans. Employers also need to understand how COBRA applies to health flexible spending accounts and health reimbursement accounts. Health savings accounts are not subject to COBRA coverage requirements, but an employer that offers a high-deductible health plan in connection with an HSA must comply with COBRA for the HDHP. To better understand COBRA and employer obligations, check out this chart of key provisions and requirements and this Compliance Overview for general information about the rules that apply to health flexible sp...