Health Care Benefits during an Unpaid Leave of Absence
HR-04-40
About This Policy
- Effective Date:
- 08-01-2012
- Date of Last Review/Update:
- 09-11-2025
- Responsible University Office:
- Human Resources
- Responsible University Administrator:
- Vice President and Chief Human Resources Officer
- Policy Contact:
- IU Human Resources
askHR@iu.edu
Policy Statement
- Indiana University policy permits employees on an unpaid leave of absence to continue participation in the university-sponsored medical and dental care plans, subject to the following provisions:
- For up to the first 6 months of an unpaid leave of absence, Indiana University will continue paying its share of premiums for university-sponsored medical and/or dental care plan coverage, provided the employee continues to pay their share.
- After the completion of 6 months and up to 12 months from the start of the unpaid leave of absence, the employee may continue coverage in university-sponsored medical and/or dental care plan coverage, provided the employee pays the full cost of the premium(s).
- After the completion of 12 months from the start of the unpaid leave of absence, the employee may elect continuation of coverage under COBRA provisions if they wish to continue coverage in the university-sponsored medical and dental care plans (COBRA coverage may continue for another 18 months).
- For an extended leave without pay due to military service, faculty with a SBIR grant, or faculty with a Prestigious Leave, there is an exception to this policy such that the employee may remain covered by an IU-sponsored medical and dental plan for a longer period of time. Generally, these exceptions shall not exceed a 24-month period, unless federal regulations for military service require a longer period.
- Employees with an extended unpaid leave due to military services, faculty with a SBIR grant, or faculty with a Prestigious Leave should consult with the Indiana University Human Resources office for details.
Reason for Policy
This policy establishes and communicates the terms on which the university and the employee will make premium payments to maintain coverage in the university-sponsored medical and dental care plans during an unpaid leave of absence.
Procedures
- When an employee is considering or has been approved for an unpaid leave of absence, refer them to the campus Human Resource Office to discuss maintaining coverage under the university-sponsored medical and dental care plans.
- Indiana University Human Resources will track the leave of absence, notify the employee in advance of approaching 6-month and 12-month milestone, and calculate the changes in the employee’s premium payment responsibilities.
Definitions
- In this policy, an unpaid leave of absence does not include a leave for military service or FMLA-covered leave, each of which is governed by separate policies regarding continued coverage for medical and dental care plans.
- Health care benefits refer to the university-sponsored medical and dental care plans.
Sanctions
Managers, supervisors, and employees who violate this policy are subject to disciplinary action, up to and including termination.