COBRA Alternatives in Minnesota (2026)

Your options after leaving a job in Minnesota

When you leave a job in Minnesota, you usually have more than one way to keep coverage. If your employer's plan is fully insured, Minnesota continuation law lets you stay on it for up to 18 months, paying up to 102% of the full cost. This applies even at small companies, which federal COBRA (for employers with 20 or more workers) does not reach.

Your employer must send you a notice within 14 days, and you then have 60 days to decide. Continuation keeps your doctors and your deductible progress, but you pay the whole premium yourself, which can be several hundred dollars a month or more per person.

Losing job coverage also opens a special enrollment period on MNsure, generally 60 days from the date your coverage ends. A MNsure plan may cost less than continuation, especially if your income for the year qualifies you for a tax credit. Compare both before you choose, because once you drop continuation you cannot go back.

If your income has dropped a lot, check Medical Assistance (up to 138% of the poverty level) and MinnesotaCare (up to 200%). Both accept applications all year, and MinnesotaCare is not available if you can get affordable job-based coverage.

How federal COBRA works

Federal COBRA lets you keep your former employer’s group plan if the employer had 20 or more employees. Coverage usually lasts up to 18 months, and you can be charged the full premium plus a 2% administrative fee, because your employer stops paying its share.

You generally have 60 days from your election notice to choose COBRA. Coverage is retroactive, so some people wait and only elect it if they need care during that window. Talk to an agent before relying on that, because missing the deadline ends the option.

Minnesota state continuation (Minn. Stat. 62A.17 and related sections)

If you leave or lose a job, or your hours drop so you lose eligibility, you can keep your group coverage for up to 18 months or until you get other group coverage, paying no more than 102% of the plan's cost. Your employer must tell you about this right within 14 days, and you have 60 days to elect it. Unlike federal COBRA, which only applies to employers with 20 or more workers, Minnesota's law reaches small fully insured employers too, and it is more generous for spouses after death or divorce.

• Who it covers: Group health plans that are fully insured (bought from an insurance company), with no minimum employer size in the statute. Self-insured plans follow different, mostly federal, rules.
• How long: 18 months for the employee (longer in some cases, such as total disability, an employee's death or divorce)

Marketplace plans and your special enrollment period

Losing job-based coverage opens a 60-day special enrollment period, so you don’t have to wait for open enrollment. In Minnesota, MNsure is Minnesota’s official, state-run health insurance marketplace. We’re an independent, licensed insurance agency, not part of MNsure or any government agency, and we can help you compare Marketplace plans and enroll. For 2027 coverage, enroll by December 15, 2026 for a January 1 start; plans picked December 16 to January 15 start February 1. Returning MNsure customers must claim their account in MNsure's new enrollment system before they can renew or switch for 2027.

Marketplace premiums are based on your expected income for the year, not last year’s. If you’re between jobs, a lower income estimate can mean a much larger premium tax credit. The enhanced federal premium tax credits expired at the end of 2025. The House passed a three-year extension in January 2026, but the Senate has not acted, so the original rules apply for 2026 and 2027: no tax credit at all if household income is above 400% of the poverty level (about $62,600 for one person or $84,600 for a couple on 2026 coverage). MNsure had projected roughly 89,000 Minnesotans would see costs rise about 50%, and MNsure private plan enrollment fell about 12% in 2026.

If your income dropped

Working-age adults without children can qualify for Medical Assistance with income up to 138% of the federal poverty level. You can apply any time of year, not just during open enrollment.

MinnesotaCare is Minnesota's Basic Health Program for adults with income above Medical Assistance limits and up to 200% of the poverty level. It costs little or nothing, enrollment is open year-round, and you generally cannot get it if you have affordable job-based coverage or Medicare. Undocumented adults 18 and older lost MinnesotaCare eligibility starting January 1, 2026.

What coverage costs