COBRA When Your Company Goes Bankrupt
COBRA requires that your company offer you health insurance through their plan, you simply foot the entire bill. However, as many dot-com casualties learned, if your company goes out of business then there is no health insurance plan for you to be a part of - COBRA can’t help you because there’s no plan for you to be a part of. So, what are you supposed to do?
Well, for starters, find out if your company outsourced your health benefits, as many smaller companies will do. If your company did, you’re in luck because technically that company offers your health benefits and COBRA will require that they offer you health benefits even though your “real” company has gone bankrupt. This comes really at no cost to them because you’re paying your way.
If that’s not the case, unfortunately you’ll have to begin researching health insurance programs…
William Gardner said,
April 23, 2007 @ 12:29 pm
My wife’s COBRA coverage was interrupted by my company’s merger. Although the coverage was outsourced she lost 2 full months of coverage because of the delay incurred as a result of the merger. Does this interruption qualify as a “second qualifying event” and is she eligible for at least a two month extension as a result of this merger?
If she is eligible for an extension how do we go about applying for same?
Thank you,
W. C. Gardner