All group health insurance policies, issued by an insurance company, a nonprofit hospital or medical service corporation, a self-insured group plan and prepaid health insurance plans delivered or issued for delivery in Vermont that insure employees or members for hospital and medical insurance on an expense-incurred, service basis or prepaid basis, other than for specific diseases or for accidental injuries only, must provide that any person whose insurance under the group policy would terminate because of the termination of employment, divorce or legal separation of the covered employee from the employee's spouse, a dependent child ceasing to be a dependent child under the generally applicable requirements of the policy, or the death of the covered employee or member shall be entitled to continue their hospital and medical insurance under that group policy (Sec. 4090a(a), as amended by S. 223, L. 2001, applicable to all health benefit plans on or after October 1, 2002, on such date as a plan is offered, issued or renewed, but in no event later than October 1, 2003).
Who is not eligible for Vermont Mini COBRA Law
Employer requirements are not mandatory (Section 4090a ) if (from Sec. 4090a(b)):
the deceased person or terminated employee was not insured under the group policy during the entire three months' period preceding termination;
the person is or could be covered by Medicare;
the person is or could be covered by any other insured or uninsured arrangement that provides hospital and medical coverage for individuals in a group and under which the person was not covered immediately prior to such termination;
the person has a loss of employment due to misconduct as defined in 21 V.S.A. §1344.
Federal COBRA law
Under COBRA, a terminated employee is entitled to continue his or her group health insurance for 18-36 months. The employee is entitled to the same coverage as current employees, since it is a seamless continuation of the current plan.
Cobra Insurance Notice
Most problems and confusion regarding COBRA Insurance involve misinformed employers who aren't aware they're supposed to offer employees COBRA. Read our Sample COBRA Notice. Also some employees thinking they should get their COBRA upon termination. Read about COBRA notification time requirements.
COBRA Insurance Cost
The 65% COBRA subsidy was for employees losing their health insurance from
Sept. 1, 2008 to after May 31st, 2010. That was part of the stimulus bill. Now the employee will be required to pay the full cost of health insurance, including any portion formerly paid by the employer. In addition, the employer can charge a 2% COBRA administration fee, bringing the total payment to 102% of the premium.
Who Qualifies for COBRA?
Employers with over 20 full time employers usually have to offer COBRA to an employee within 45-60 days of the qualifying event. Qualifying events include the employee losing their health insurance for a variety of reasons including a reduction in hours or termination. Dependents who lose insurance for other reasons, such as divorce, also qualify for COBRA. Exceptions include employees terminated for willful gross misconduct, employers with less than 20 total employees, non profits or churches organizations.
No Mini Cobra Coverage
47 of the 50 U.S. states have COBRA laws that cover smaller employers, generally called state mini-cobra laws. States that have not passed a mini-cobra law include Alabama, Alaska, and Delaware.
Among States that have mini-cobra laws, the lengths of coverage vary from 30 days to 36 months. Please refer to our Mini State COBRA Law Directory.
Written by Craig J. Casey
Craig Casey is an Writer, Coach, Blogger, Husband, and Former Health Insurance Agent helping people on the web since 1999 with their health insurance problems.
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Employers who offer group health care plans to a minimum of 20 employees must comply with ERISA (the Employee Retirement Income Security Act of 1974). The Federal version or the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA), requires that most group health plans provide 18-36 months of continuing health insurance.