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COBRA Coverage in Vermont

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How long can an employee maintain COBRA coverage in Vermont?

There are many employees that have been laid off.  What happens to their health care coverage when they lose their job?  The former employee would lose their health care coverage but now COBRA can help them gain health care coverage. 

COBRA the Consolidated Omnibus Budget Reconciliation Act was passed by Congress in 1986.  The plan is extended on a temporary basis for 18 months.   

An employee can qualify if he or she is involuntary or voluntarily terminated (except for gross misconduct) or their hours are reduced. Spouses can qualify if the employee is terminated, their hours are reduced; the covered employee is now eligible for Medicare; there is a divorce or legal separation or death of the covered employee. Dependents are eligible if any of the above are true or there is a loss of dependent child status under the plan rules.

If an employee, spouse or dependent becomes disabled during the first six months of COBRA coverage, he or she can be eligible for an additional 11 months of coverage.  If the former employee is divorced during the COBRA coverage period, the former spouse can be eligible for an additional 18 months of coverage. 

Employers are qualified to offer COBRA coverage if they have at least 20 or more employees and offer a group health care policy to their current employees.  Full time and part time employees are used in the eligibility calculation. The cost of the coverage cannot exceed 102% of the cost of the plan itself. 

Employees who are absent from work due to the Family Medical Leave Act (FMLA) are not eligible for COBRA until their leave of absence has ended.  During the FMLA the employer is responsible for making health care premium payments. 

When an employee is hired by a new company and covered by their health care insurance plan, the COBRA health care plan is terminated. GW