Most employers are familiar with the federal COBRA law. However, many may not be aware that most states have also passed their own version of COBRA, popularly called mini-COBRA laws. While many of these laws are similar to federal COBRA, there can be important differences.

What employers have to comply with Vermont mini-COBRA?

 

Vermont mini-COBRA applies to employer group health plans, including self-insured plans, that are delivered or issued in Vermont.

What are the qualifying events?

 

Vermont mini-COBRA qualifying events are similar to federal COBRA. Qualifying events include:

  • Termination of employment (except for gross misconduct)
  • Reduction of hours causing a loss of coverage
  • Death of the employee
  • Divorce, dissolution, or legal separation
  • Loss of dependent status

Continuation coverage generally lasts for 18 months.

Who is a qualified beneficiary?

 

A qualified beneficiary is an individual covered by the plan on the day of a qualifying event.

Are there notice requirements?

 

Notice of an employee’s continuation coverage rights must be included in each certificate of coverage. Employers are required to provide a written notice of continuation rights to the employee within 30 days of the qualifying event. Employees have 60 days to elect continuation coverage. Elections must be submitted in writing.