When you’re injured at work, one of the first questions that comes to mind—after worrying about recovery—is, “Can I lose my health insurance while I’m on workers’ compensation?” It’s an important concern, especially if you rely on employer-sponsored health coverage. The short answer is: it depends on your employment status and company policies. Let’s break it down.
Understanding Workers’ Compensation
Workers’ compensation (workers’ comp) is a state-regulated program that provides medical care and wage replacement for employees injured on the job. It’s designed to cover work-related injuries or illnesses, not general health issues. While it pays for medical expenses related to your injury, it does not replace your regular health insurance.
So, suppose you get sick or need medical care unrelated to your workplace injury. In that case, you still need your personal or employer-provided health insurance.
What Happens to Health Insurance When You’re Out of Work
Suppose your injury prevents you from working for an extended period. In that case, your employment status may determine whether you keep your health insurance.
- Suppose you’re still considered an active employee. In that case, your employer typically continues your health coverage as long as you keep paying your share of premiums.
- If your employer terminates your employment while you’re on workers’ comp (which is legal in some cases, though not for retaliation), your health insurance may end once your employment officially ends.
Each employer has its own policy, so it’s crucial to review your employee handbook or speak with HR to understand what applies in your case.
Continuing Coverage Through COBRA
If your health insurance ends because you’re no longer employed, you may be eligible for COBRA (Consolidated Omnibus Budget Reconciliation Act) continuation coverage.
COBRA allows you to continue your employer’s health plan for up to 18 months (or longer in some cases) after losing your job. However, you’ll need to pay the full premium yourself, which can be significantly more expensive than what you paid while working.
Can Your Employer Cancel Health Insurance While You’re on Workers’ Comp?
In most states, employers cannot drop your health insurance simply because you filed a workers’ comp claim. That would be considered illegal retaliation. However, if you were laid off or the company changes its benefits plan for all employees, your coverage could still change or end for legitimate business reasons.
If you believe your employer canceled your health insurance because you filed a workers’ comp claim, contact a workers’ compensation attorney or your state labor board immediately.
Paying for Health Insurance Premiums While on Workers’ Comp
Even while you’re on workers’ comp, you’re usually still responsible for your portion of the health insurance premiums. If you normally have deductions taken from your paycheck, you’ll need to arrange payment directly with your employer or insurance administrator since you may not be receiving regular paychecks.
Failing to pay your portion could result in losing coverage, so make sure to stay on top of premium payments.
What to Do If You Lose Coverage
If you lose your employer-sponsored health insurance while on workers’ comp, don’t panic—there are alternatives:
- COBRA coverage – Continue your previous plan temporarily.
- Marketplace insurance – Through HealthCare.gov or your state’s marketplace, you can apply for a new plan, often with subsidies if your income is reduced.
- Medicaid – Depending on your income and state, you may qualify for free or low-cost coverage.
These options ensure that you’re still protected for non-work-related health needs while recovering from your injury.
Key Takeaway
Being on workers’ compensation doesn’t automatically mean you’ll lose your health insurance. Still, it depends on your employment status and your ability to keep up with premium payments. Always communicate with your employer or HR department, explore COBRA or marketplace options, and don’t hesitate to seek legal advice if you suspect unfair treatment.
Your health—and your peace of mind—are too important to leave uncertain.