Most employers are familiar with the federal COBRA law. However, many may not be aware that most states have also passed their own version of COBRA, popularly called mini-COBRA laws. While many of these laws are similar to federal COBRA, there can be important differences.
What employers have to comply with Minnesota mini-COBRA?
Minnesota mini-COBRA applies to employer group health plans, including certified health maintenance organizations (HMOs).
What are the qualifying events?
Minnesota mini-COBRA qualifying events are similar to federal COBRA. A qualifying event includes:
- Termination of employment (except for gross misconduct)
- Reduction of hours resulting in a loss of coverage
- Divorce or legal separation
- Enrollment in Medicare (employee only)
- Loss of dependent status for a dependent child
Length of continuation coverage depends on the qualifying event. Coverage lasts for 18 months for terminated employees and their spouses and dependent children. For dependent children and legally separated, divorced, or widowed spouses, coverage lasts until they are covered under another group health plan or are enrolled in Medicare.
Who is a qualified beneficiary?
A qualified beneficiary is an employee, spouse or dependent that is covered one the date of the qualifying event.
Are there notice requirements?
Carriers are generally required to provide qualified individuals with a notice of their continuation coverage rights. Employers must inform employees in writing with 14 days after termination on how to elect continuation coverage and the amount, method, and deadline for making premium payments. The notice must be sent by first class mail to the employee’s last known address.