Healthspan Blog

Long healthspans mean happy lives

How useful is COBRA if your company is bought out?

24th May 2006

A question on losing health coverage:

The company I work for has been sold. After promising COBRA coverage they came back and said “oops” since there is no plan anymore they cannot do COBRA. Is this kosher? Are people whose companies go out of business or get sold just S.O.L.?

The answer from the COBRA FAQ is that the poor guy is out of luck:

 Am I eligible for COBRA if my company closed or went bankrupt and there is no health plan?

If there is no longer a health plan, there is no COBRA coverage available.  If, however, there is another plan offered by the company, you may be covered under that plan.  Union members who are covered by a collective bargaining agreement that provides for a medical plan also may be entitled to continued coverage.

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