MN SF3022

Requires health insurers offering group coverage to employers to provide eligible former employees with the option to obtain a GAP (low-cost immediate conversion) policy without first enrolling in continuation coverage.

Employers or insurers must provide written notice of GAP policy rights to former employees at the same time as continuation coverage notices.

GAP policies must offer at least three options: $1,000 annual deductible with 80% coverage above deductible and $10,000 out-of-pocket maximum; qualified high-deductible health plan compatible with health savings accounts; or $10,000-$15,000 annual deductible with 100% coverage above deductible, all subject to $1,000,000 lifetime maximum benefit per individual.

Former employees must elect GAP coverage by the continuation coverage deadline and cannot have GAP coverage if already enrolled in continuation coverage; coverage is renewable until becoming eligible for group coverage as employee/dependent or for 18 months, whichever is earlier.

Insurers cannot use GAP policy loss experience to determine employer group coverage premiums or other features, and coverage must be issued on guaranteed-issue basis following HIPAA preexisting condition definitions.

Effective January 1, 2011, for employment terminations or layoffs beginning on or after that date.