Vermont Mini-COBRA: Continuation of Health Insurance Coverage

Vermont’s Continuation of Coverage Law—often referred to as mini-COBRA—allows certain employees to temporarily maintain their employer-sponsored health insurance after job loss, a reduction in hours, or another qualifying event. This provision helps ensure continued access to group health benefits during periods of employment transition.

The law applies to smaller employers with fewer than 20 employees and requires employers to notify affected individuals of their right to continue coverage, along with the steps and costs involved. Eligible individuals must act within a specified timeframe to maintain their health plan through the continuation period.

Vermont's Mini-COBRA Law

Under Vermont’s mini-COBRA law, employees of small businesses with 2 to 19 employees may continue their group health insurance coverage for a limited period after experiencing a qualifying event. The employer must still offer a group plan, and eligible individuals are required to pay the full cost of the premium—up to 102% of the total rate, including a 2% administrative fee.

• Employer Size: Applies to private employers with fewer than 20 employees offering group health insurance coverage.
• Eligibility: Employees and their covered dependents whose group coverage is ending due to job loss, layoff, or reduction in work hours.
• Qualifying Events: Termination of employment, reduction in hours, or other events causing loss of group coverage.
• Coverage Duration: Continuation coverage generally lasts up to 18 months. It may end sooner if the individual enrolls in another group health plan or becomes eligible for Medicare.
• Premium Payment: Individuals must pay the entire premium amount, including up to a 2% administrative fee, directly to the insurer.
• Election Period: Employers must notify individuals within 30 days of the qualifying event. The eligible individual has 60 days from that notification to elect continuation coverage.
• How to Apply: Individuals should follow the instructions provided in the continuation notice issued by the employer or insurer to elect coverage and begin submitting monthly premiums.

Alternative Low Cost Medical Plans in Vermont

Continuing an employer plan in Vermont with Mini-COBRA is around $1,224/mo, per individual. If COBRA is unavailable or is outside of your budget, you do have affordable other options for health coverage. See below:

The cost of health insurance is determined by your age and state of residency.