How COBRA Insurance Works In Minnesota

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.