How COBRA Insurance Works in Minnesota

In Minnesota, individuals who lose their job or experience a reduction in hours may be eligible to continue their employer-sponsored health insurance through COBRA or the state’s Mini-COBRA program. While federal COBRA applies to employers with 20 or more employees, Minnesota’s Mini-COBRA offers similar continuation coverage for workers whose employers have 19 or fewer employees. On average, COBRA coverage in Minnesota costs around $452 per month for individual plans, with enrollees responsible for the full premium amount.

Minnesota Mini-COBRA Law

Minnesota's continuation of health coverage law, often referred to as "Mini-COBRA," provides eligible employees the right to continue their group health insurance after certain qualifying events. This state law applies to a broad range of plans, including those underwritten by commercial carriers, HMOs, Blue Cross Blue Shield of Minnesota, Multiple Employer Welfare Arrangements (MEWAs), and fully insured church plans. It also extends to political subdivisions such as counties, school districts, and municipalities.

• Eligibility: Applies to employees who are voluntarily or involuntarily terminated or laid off, excluding cases of gross misconduct. A layoff includes a reduction in hours making the employee ineligible for the plan.
• Coverage Duration: Up to 18 months, or until the individual becomes covered under another group health plan, whichever occurs first.
• Premium Cost: The individual must pay the full premium plus up to a 2% administrative fee, totaling no more than 102% of the plan's cost.
• Election Period: Employees have 60 days from the date coverage would otherwise end or from the date they receive notice, whichever is later, to elect continuation coverage.
• Employer Responsibility: Employers must provide written notice of the right to continue coverage within 14 days of termination or layoff.
• Conversion Option: At the end of the continuation period, individuals have the right to convert to an individual policy without evidence of insurability, provided they apply within 30 days.

Alternative Low Cost Medical Plans in Minnesota

Continuing an employer plan in Minnesota with Mini-COBRA is around $556/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.