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.