American Rescue Plan Act of 2021’s COBRA Subsidy Ends September 31. What’s next?

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Much of the the Minnesota Continuation and Coverage law (MN Stat. Sec. 62A.16) is the same as the Consolidated Omnibus Budget Reconciliation Act of 1985. The main exception is that it covers all Minnesotans that lose group health insurance coverage. The federal COBRA law only applies to businesses with 20 or more employees.

Eligibility For COBRA In Minnesota

The qualifying events that trigger a special open enrollment period for electing COBRA Insurance in Minnesota are the same as those found in the federal COBRA act. Workers who have quit or lost their job (including retirees) may elect to continue their workplace group health plan for up to 18 months.

When employer-sponsored insurance ends for family members, they may use either Minnesota Continuation and Coverage law or federal COBRA to continue on the same group plan. The insurance policy dependents may use the coverage for up to 36 months. In Minnesota, you are eligible for continuation coverage as a recently divorced ex-spouse. Children who lose dependent status by turning 26 years old may elect to continue on the insurance plan. As well as all family members may elect COBRA in the event the policy holder passes away.

Electing COBRA Coverage

Minnesota employers have 14 days to provide paperwork to former employees eligible for COBRA from when the insurance stopped to offer continued coverage. At that point you have 60 days to elect COBRA continuation or formerly waive your right to it. Many companies use a third-party administrator to handle enrollment and billing. Smaller companies often will accept the insurance premium payments directly to send onto the carrier.

What’s Covered?

Continuation insurance is the same insurance you had when you were employed. You will have the the same deductibles, co-pays, ID cards and healthcare networks. Wherever you are at with out-of-pocket expenses, will rollover into your new enrollment into the same plan.

What’s The Main Difference?

The group health plan’s premiums were paid from payroll deductions with a subsidy from your employer. When on a COBRA plan, you are responsible for the entire premium, plus an additional 2% administration fee. 

Affordable Temporary Health Insurance

If you are fairly healthy and still want to remain insured, alternatives to COBRA insurance may be available based on where you live. Short-term health insurance is a popular option and available in most States. This can protect you from high medical costs of new injuries or new illnesses that unexpectedly occur while allowing you to use any licensed doctor. Coverage is available up to $1 million per person. For more information and pricing, you can call us at 1-877-262-7241 or complete a free quote online.

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Short-Term Health Insurance is popular and available in most states to cover gaps between major medical plans.

These plans also cover COVID-19 hospitalization. After deductibles and coinsurance, many plans will have $1 million in coverage.


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