Minnesota offers unique options for employees seeking to extend their group health coverage after coverage ends due to certain events. Unlike federal COBRA, which applies only to organizations with 20 or more employees, Minnesota's continuation laws provide protection for both small and large employers. This expanded eligibility ensures that individuals receiving employment-based coverage from smaller companies are not left without options for continued healthcare coverage.

§ Minnesota State Continuation often serves as a supplement to COBRA, covering gaps or extending coverage in certain cases.

§ Minnesota’s laws allows continuation coverage for employers regardless of size, while COBRA is limited to employers with 20+ employees.

§ Duration rules are similar, but Minnesota may offer continuation in some cases beyond COBRA’s coverage window.

Minnesota requirements apply to employers with two or more employees who reside and work in Minnesota (Minn. Stat. § 62A.10; Minn. Stat. § 62A.20).

HealthEquity will support two offers for Minnesota.

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There are two communications for Minnesota State Continuation (i.e., for small groups subject to Minnesota State Continuation laws only): a Minnesota State Continuation insert sent with a State Continuation Election Form.

Upon notification of a qualifying event, individuals will be provided with an election packet for COBRA or Minnesota State Continuation. Each packet includes a dynamic insert that informs the individual of their potential rights under Minnesota law. This dynamic insert rule is configured based on the plan and the individual's address (state = MN).

For members still enrolled in coverage, live in Minnesota, and are enrolled in a plan that is indicated as State Continuation Eligible, they will receive the Minnesota State Continuation Coverage Confirmation of Eligibility Notice (CLS13) issued approximately 60 days prior to the expiration of COBRA or state continuation coverage.

Yes, qualified beneficiaries will need to return the State Continuation election form to elect Minnesota State Continuation at the beginning of their applicable continuation coverage eligibility period via mail or fax. Failure to return the form will result in cancellation in accordance with standard cancellation policies.

No, members cannot elect Minnesota State Continuation online. They will need to return the COBRA election form to HealthEquity.

Coverage Duration

Disability Coverage

No, Minnesota State Continuation and Minnesota Life are two different products. Clients can have both Minnesota State Continuation and Minnesota Life, or one without the other.

There is no regulatory requirement to automatically cancel coverage when a member on Minnesota State Continuation moves out of the state. The members can remain on coverage. The coverage is not cancelled but it may be less valuable, depending upon the availability of out-of-state networks.

There is no regulatory mandate requiring employers to offer Open Enrollment to Minnesota State Continuation members. However, HealthEquity’s operational stance is that to administer Minnesota Health effectively, state continuation members must be treated the same as federal COBRA participants. This includes offering Open Enrollment—even during indefinite coverage periods.

State continuation coverage doesn't provide the same rights during open enrollment as Public Health Service Act (PHSA) COBRA. See statute, below.

Under Minn. Stat. § 62A.21, for example, which addresses indefinite coverage for spouses and children following divorce, the statute makes no reference to annual enrollment rights consistent with federal COBRA. The League of Minnesota Cities COBRA guide states, "In general, Minnesota continuation laws do not require employers to offer open enrollment rights to continuation participants. In general, the type of coverage available under Minnesota continuation laws is the coverage the employee and dependents had at the time of the qualifying event (as that may be modified from time to time for active employees)."

Under retiree continuation at Minn. Stat. § 471.61, Subd. 2b, "A unit of local government must allow a former employee and the employee's dependents to continue to participate indefinitely in the employer-sponsored hospital, medical, and dental insurance group that the employee participated in immediately before retirement." It doesn't state that the employee may add dental coverage on a subsequent enrollment period or reenroll if they allow it to lapse when continuation is first elected. Similarly, part (c) of this subdivision states, "A former employee may receive dependent coverage only if the employee received dependent coverage immediately before leaving employment." While it allows retiree to continue in the same program, these limitations suggest that not all rights under the program (such as open enrollment rights) also continue.

Medical, dental, and vision are offered under Minnesota State Continuation.

Yes, the deadline dates are generally the same as federal COBRA. For survivor continuation coverage following an employee’s death, however, they are afforded a 90-day grace period in which to make their premium payments.

Under Minnesota law, continuation coverage ends when the maximum eligibility period expires or when “coverage would otherwise end,” such as failure to pay the required premium, the employer ceases to offer group health plan coverage to any employees, or terminations for cause.

No, the company does not have to be located in Minnesota for Minnesota State Continuation coverage to apply. What matters is that the employee resides in Minnesota at the time of separation. Minnesota State Continuation laws are based on the employee’s location at the time of the qualifying event, not the employer’s location.

However, it's important to note that:

Per Minnesota State Continuation regulations, a member on disability cannot be charged more than 100% of the cost of the plan. This would apply to the time the continuation is running concurrently with the 18 months of COBRA, also (i.e., from the time they elect on day one).