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How COBRA Insurance Works In Vermont

Vermont’s Continuation of Coverage Law, also known as mini-COBRA, provides certain employees who lose their employer-provided health insurance coverage with the opportunity to continue that coverage for a limited period of time. This coverage is generally available to employees who have been terminated, laid off, or had their hours reduced.

The law requires employers to provide written notice to affected employees regarding their continuation of coverage options and the necessary premium payments.

COBRA Eligibility

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Vermont’s Mini-COBRA Law

Vermont’s mini-COBRA law allows employees of small businesses, with 2 to 19 workers, to temporarily continue their group health coverage in case it is terminated due to changes in their work or family lives, such as losing their job. This law requires that the employer continues to offer a group health plan, and the employee can retain their group health coverage for a limited period of time by paying the premiums.

However, the health insurance coverage is usually more expensive than health coverage for active employees, since the employer usually pays part of the premium for active employees. The employee may have to pay up to 102% of the entire premium, which includes a two percent (2%) administrative fee.

The Vermont Continuation of Coverage law applies to private employers with fewer than 20 employees and requires that the group health insurance plan offer continuation of coverage to any person whose insurance under a group health insurance plan is terminating because of a qualifying event. The eligible employee will have up to 60 days to notify the insurer in writing if they want to continue their coverage after their employer notifies them of their continuation of coverage rights within 30 days following the occurrence of any qualifying event. The continuation of coverage generally lasts for 18 months, and the employee may choose to end it sooner by obtaining coverage with another employer’s group health insurance plan that does not contain any exclusion or limitation for pre-existing conditions or by becoming entitled to Medicare benefits.

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Getting Coverage For Pre-Existing Conditions In Vermont

It is essential for people in Vermont with pre-existing medical conditions to have health insurance coverage. Pre-existing conditions can be either chronic or acute medical conditions that existed before the effective date of the insurance policy.

Without health insurance, individuals with pre-existing conditions may face significant medical expenses, limited access to healthcare providers, and financial instability. Health insurance can provide coverage for hospitalization, surgery, medication, and other necessary medical services for pre-existing conditions.

Utah residents can continue coverage under a group policy through state continuation benefits or choose a certified major medical plan under the Affordable Care Act to ensure sufficient health insurance coverage.

Marketplace / Obamacare

Sometimes state and federal subsidies help offset the premium for individual marketplace insurance.

A loss of work health insurance is a qualifying event to find new healthcare through the public healthcare exchange.

In 2023, the average ACA health plan premium in Vermont is $462/month per individual, according to the Kaiser Family Foundation.

You May Qualify For A Subsidy

Apply For COBRA

Employer Has 20+ Employees

As an employee, you may continue your most recent work health insurance for up to 18 months. Family members may access the plan for up to 36 months.

You sign up for COBRA with your former employer or their third party.

The premium will be $400 – 700 / month, per insured person.


After your workplace insurance ends, you’ll sign up for Medicare within 8 months.

In general, you can sign up for Part A and Part B starting three months before your 65th birthday and ending three months after your 65th birthday.

Learn more about Medicare deadlines and how Medicare Advantage plans can replace original Medicare at no cost to you.

COBRA Is Available In All 50 States

Employee continuation of health insurance coverage is not required in all states. When a state lacks laws governing the continuation of work-related medical benefits, the federal COBRA Act protects these rights. Find out more about your state.

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