|
VADA Insurance Trust VIPER The State of Vermont enacted H. 633 which provides for continuation of medical insurance for employees in the event of termination of employment from an employer with fewer than twenty employees. H. 633 requires that continued medical coverage be available to employees upon termination of employment (except if the employee is terminated for misconduct) as long as the employee was covered under the plan for at least three months. Employees may choose to continue coverage for their dependents who were insured at the time of termination; however, coverage cannot be continued for dependents only. Continuation need not be provided if an employee is or could be covered by Medicare or any group arrangement (insured or uninsured) under which he was not covered immediately prior to the termination. If elected, medical coverage will continue until the earliest to occur of the following:
You must mail the form or give to individuals eligible for continuation (terminated employees or surviving dependents). Terminating employees, if interested in continuation, must return the completed form along with the proper premium payment (the group rate) to V ADA thirty days after the later of the date employment is terminated or the date notice is given. A surviving dependent should return the completed form and proper premium payment to VADA within sixty days of the day of the employee's death or the date notice is given, whichever is later. It is imperative that you provide employees with this notice upon termination and Failure to comply with this law could result in severe financial penalties for you. Please be sure your dealership complies! |