New Bulletin Addresses Medical Coverage for Part-Time Employees

On Oct. 16, 2017, the Vermont Division of Insurance published Insurance Bulletin No. 196, which relates to medical coverage eligibility for part-time employees. According to the bulletin, while Vermont law establishes certain requirements for carriers to allow part-time employees to be eligible for coverage, the intent of the law was to offer employers the option to cover part-time employees. For purposes of this law, a “part-time employee” is one who works 17.5 hours or more per week. The decision of whether to cover part-time employees under the employer’s group health plan was then left to the employer. The statutory provisions allow the rate for part-time employees to be set at the same rate as full-time employees, and they allow the employer to decide the cost-sharing arrangement (premium contribution rates) for covered part-time employees. The employer can require part-time employees to pay the full cost of coverage, even if they contribute a portion (or all) of the premium expense for full-time employees.

The bulletin contains no new employer compliance obligations. But employers should be aware of the bulletin and the coverage requirements from carriers relating to part-time employees.

Insurance Bulletin No. 196 »