Short answer: Coverage must be maintained during FMLA leave, but the employee still owes their share. The employer sets a payment arrangement; if the employee doesn’t pay within the grace period, coverage can be dropped after proper notice, and the employer may recoup advanced premiums on return.
FMLA requires the employer to keep the employee’s coverage in force during leave, but it doesn’t waive the employee’s premium contribution. Employers should establish how the employee will pay (e.g., by check during leave) and provide the required grace period and notice. If the premium still isn’t paid, coverage may be terminated per FMLA rules, and the employer can generally recover premiums it advanced if the employee doesn’t return. A clear written leave policy prevents disputes.