Alternative Plans to the Minnesota Plan

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Employers can meet their Paid Leave obligations through offering an alternative plan from a private carrier, or a self insured plan that meets or exceeds the state coverage requirements. 

Alternative Plans can be a lower cost, and offer more administrative support for processing claims. 

Instead of paying premiums to the state of Minnesota, you work with an insurance carrier directly to administer your plan. 

Cost - Based on the occupations and the wages of your group, the overall cost of the program could offer a lower rate. 

Example, a carrier may offer an annual rate of .61 muptlied by your annual payroll, instead of the state approved .88 rate.  

Plan Administration - Instead of administering the plan through the State of MN, Employers can work with an insurance carrier to ensure an efficient administrative experience. 

Alternative Carrier or Self Insured plans must offer similar or enhanced benefits to that of the state plan, and if an alternative plan is more expensive, employers are not allowed to charge employees more for their portion. 

To request a an Insurance Carrier Equivalent Plan through the state an Employer must provide the Policy #, plan # and carrier, a policy document, coverage effective dates covering a full year, and a fee of $250, $500 or $1000 depending on employer size.