Minnesota COBRA subsidy notice requirement

[Guest benefits_analyst]

Background: MN enacted a new law that says employee eligible for the federal COBRA subsidy are also eligible for the MN COBRA subsidy. The state will pay the subsidy directly to the employer or COBRA vendor.

Employers who are required to provide notice under ARRA must include information about the availability of the state subsidy to "qualified individuals" residing in MN. The notice must include the eligibility requirements for the state subsidy and state that the individual must apply to the commissioner of human services to receive the state subsidy.

I have combed the internet and the state's website and have found very little information. There isn't any information under the MN Human Services dept site. I even found a copy of the COBRA notice that the state provides to its own employees and there is no mention of the state subsidy.

Does anyone out there have any insight on this new law? Perhaps model notice language?

[Peter Gulia]

Before writing the text of the notice, it might be prudent for a plan fiduciary to consider whether to furnish the notice. If the employer's plan is an ERISA-governed plan, ERISA might preempt those provisions of a State statute that otherwise would require a plan fiduciary to administer the plan other than according to the plan's terms together with Federal law (and unpreempted State law, if any is relevant). To some, it might be tempting to volunteer the State's notice because one guesses that adding yet another notice might be less expensive than asking for a lawyer's advice about whether the employer must furnish the State's notice. (That a benefits analyst is thinking about how to write a notice suggests that it might not be so inexpensive after all.) But an ERISA-governed plan's fiduciary should consider whether furnishing the State's notice could be harmful to the plan's current or future ability to provide health benefits to the plan's participants and their beneficiaries.

[Guest benefits_analyst]

Good point on the ERISA preemption Peter.

I spoke with someone from the MN Dept of Human Services and got a little more information. They are still working out the admin details. No word on when these details will be posted on the Human Services website but it should be "soon". Still no answers on the effective date of the provision either.

We are going to take a "wait and see" approach on this one.