Just a two week stint without medical benefits? That can't be right. I don't mean that in a "stupid management" sense either. That info can't be correct.
Insurance companies just don't suspend coverage for 2 weeks and refund the pro-rate to the employer. They know that there would be a spike in claims on the first day the coverage begins again (and its kinda hard to prove if you got that expensive terminal illness while you were out on your HTL).
Also, why would the company insist on canceling flight benefits for the HTLs and not the full month TOWOPs. OK... that one is one of those "stupid management" possibilities.