September 13, 2019 / 9:18 PM / 5 days ago

Worker's FMLA leave did not qualify her for COBRA coverage- 6th Circuit

A U.S. appeals court on Friday said Steak N Shake (SNS) was not required to notify a former assistant manager that she was eligible for continuing health insurance coverage while she was on medical leave, because she only lost coverage when she stopped paying her premiums.

A unanimous three-judge panel of the 6th U.S. Circuit Court of Appeals said that because the terms and conditions of Rebecca Morehouse’s insurance coverage did not change when she went on leave in 2013, no “qualifying event” occurred to trigger SNS’ obligation to notify Morehouse of her rights under a provision of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).

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