COBRA AND MINNESOTA CONTINUATION Health insurance continuation
The federal COBRA rules require many employers with group health plans (generally 20 or more employees) to offer temporary continuation coverage when coverage would otherwise end due to qualifying events (for example, termination of employment, reduction of hours, divorce, loss of dependent status). • Qualified beneficiaries must receive timely notices and the opportunity to elect continuation. • Coverage usually lasts 18 or 36 months, depending on the event, and beneficiaries may be required to pay up to 102 percent of the applicable premium. Minnesota law adds continuation and conversion requirements for certain fully insured group health policies beyond COBRA, especially for smaller employers and Minnesota‑specific events. Employers sponsoring group health benefits should: • Coordinate with carriers or TPAs to ensure COBRA and Minnesota continuation notices are sent on time. • Confirm who is responsible for notices, premium billing, and tracking end dates. Because continuation rules are technical, consultation with counsel or qualified benefits administrators is strongly recommended. Group life insurance continuation (Minnesota) Federal law does not require continuation of employer‑provided life insurance, but Minnesota mandates that group term life policies issued in the state allow: • Employees who lose eligibility (termination, layoff, or reduction in hours below the plan’s eligibility minimum) to continue group life coverage for themselves and their dependents for up to 18 months , or until they obtain other group coverage, whichever comes first. • The employer or insurer may require the individual to pay the full premium cost for continued coverage. Plan sponsors should ensure their group life policies and employee communications reflect these Minnesota continuation rights and clearly explain the cost, election deadline, and end date.
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