Under COBRA law, when an employee or dependent has a "qualifying life event" that causes the loss of health insurance coverage, they have at least 60 days to choose if they want to continue coverage. (Photo: Shutterstock)
The current economic situation caused by COVID-19 safety measures has millions of people wondering how they can keep their employer's health insurance plan. Companies have been forced to furlough or layoff their workforce until the economy improves. In fact, the U.S. economy lost more than 20 million jobs in April. As such, people want to know whether or not they can sign up for COBRA continuation coverage and if they will be able to afford it.
|What is the difference between a furlough and a layoff?
While they may seem similar, there is a difference between getting furloughed and being laid off.
A furlough is usually temporary, with a specific end date. However, a company can extend the furlough beyond the initial period or later convert it into a layoff. During a furlough, the employee experiences a forced, unpaid leave of absence, but is still considered an employee.
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