Vermont Medical Insurance

Medical insurance protects you from hefty medical bills and safeguards your health. Its protection gives you peace of mind when you need it most. It is critical to carry medical insurance for yourself and your family. Before purchasing coverage you will want to decide on the type of coverage that would work best for your family and how the expense fits into your family budget. If you are a Vermont resident you will see that there are many medical insurance options available to you. The government department that oversees medical insurance in the state is the Vermont Department of Banking, Insurance, and Securities & Health Care Administration (BISHCA). 89.3% of 616,000+ Vermonters are insured.

Regulations For Individual Medical Insurance

Vermont is one of the 5 states that offer guarantee issue medical insurance. The guidelines state that if you live in Vermont and cannot get medical insurance through a group plan, any company you apply to must approve you for insurance. Premiums are fixed for 1 year and are not medically underwritten. Rate increases at renewal time cannot exceed 20%, even if you have made numerous claims. Elimination riders cannot be placed on a policy, however there is one thing an insurer can do. If an applicant lacks creditable prior coverage, they can be subject to a 1 year exclusion of certain claims. Insurers can check up to 1 year prior of health history for such reasons. Civil unions are treated like marriage for the purpose of medical insurance in Vermont.

Medical Insurance for Small Groups

Companies with 1 to 50 employees are termed small group in Vermont and must be offered guarantee issue policies. What this means is that the group cannot be turned down for coverage.  Guidelines do state the at least 2 of the company's workers must work at least 20 hours weekly for half the past quarter. Insurers typically require 75% participation from the company. Those who are on a spousal plan are not included in the 75%.  All employees must be accepted into the group and rates are not based on health. Companies are required to offer 2 Vermont medical plans, which are standardized common medical plans and are identical

Continuation Coverage and COBRA

COBRA medical insurance continuation is a federally mandated law that gives employees in companies having 20+ employees the right to continue their medical insurance coverage if they have been terminated. Coverage can continue from 18 to 36 months and is at the cost of the employee. Vermont also offers a mini-COBRA plan for companies who are too small to be covered by the federal plan. It gives only 6 months of coverage to employees who have been on the plan for at least 3 months. Mini-COBRA must be activated within 30 days of the end of employment. Conversion plans are another way to go, as is the guarantee issue plan in VT, if your health insurance benefits run out.