What Is An Extended Illness Benefit?

health insurance claim form

The Extended Illness Benefit (EIB) is a federal payroll program that provides monetary compensation to eligible employees who are unable to work due to an illness or injury. In this article, we’ll discuss the eligibility criteria, covered medical conditions, the application process, and limitations of the EIB, as well as other related benefits like short-term disability insurance and workers’ compensation.

Eligibility Requirements

To be eligible for the EIB, employees must meet the following criteria:

  • Full-time or active employee in the United States
  • Employed for at least 12 months prior to the onset of their illness
  • Minimum of 1,000 hours worked during that time period
  • Provide proof of a medical condition that is expected to last longer than three months
  • Exempt employees are not eligible for EIB benefits

Once an individual meets all the requirements, they can submit a claim and receive up to 66% of their regular salary while they are out of work due to illness. It’s important to note that this benefit is only available for the actual employee hours lost due to illness and does not cover any other employee benefits such as health insurance or vacation pay. Furthermore, the benefit may be reduced if an individual has already taken leave from work or received donations from other sources such as friends or family members.

Covered Medical Conditions

The EIB covers medical conditions such as cancer, chronic illnesses, and severe injuries, as well as mental health issues and disabilities. It also covers hospitalization expenses and recovery time needed after hospitalization. However, the benefit does not cover short-term illnesses such as the common cold or influenza, nor does it cover any non-medical related absences from work. The benefit may be extended if additional time is needed beyond the initial 12-month period for recovery or if the medical condition has been determined to be permanent.

Application Process

Employees can apply for the EIB directly through their employer or an external healthcare provider. To receive EIB payments, employees are required to provide proof of their medical condition from a healthcare provider, as well as information regarding their actual employee hours and salary prior to their illness or injury. Both current and former employees may be eligible for the benefit depending on when they experienced the illness or injury. Once all required documents have been submitted, employers will review them and make a decision about whether or not to approve the application for EIB. If approved, payments will be made directly from the employer’s payroll system into the employee’s bank account on a regular basis.

Limitations of the EIB

The EIB generally covers employees for up to one year from the start of their illness or injury. However, only full-time employees and active employees are eligible for EIB coverage, meaning any exempt or part-time employees will not be able to access it. Moreover, any employee who has already received payment from the EIB cannot receive additional payments during the same period. Employers should review their current policies and take into account actual employee hours worked in order ensure that all eligible employees are being fully covered by the Extended Illness Benefit.

Other Related Benefits

In addition to the EIB, there are other related benefits that employers should consider offering to their employees, such as short-term disability insurance and workers’ compensation. Short-term disability insurance covers a percentage of an employee’s salary for a determined period of time, typically between three and six months. Workers’ compensation covers medical expenses and lost wages due to a workplace accident or illness. All states have laws in place governing workers’ compensation, but employers should be sure to stay up-to-date on the details of their particular state’s requirements when offering this benefit to their employees.


related articles

PEO vs HRO: Which Option is Right for Your Company?
What Is Strategic Staffing? The Definitive Guide
How Does Human Resources Create Value For A Company?
>