What happens to COBRA when company closes?

If your employer chooses to drop its health insurance benefits as a result of a Chapter 11 bankruptcy filing, you will lose your health coverage. You cannot continue your coverage through COBRA because the group plan will no longer exist.

Can COBRA deny you coverage?

COBRA Notice of Unavailability of Continuation Coverage Group health plans may sometimes deny a request for continuation coverage or for an extension of continuation coverage.

What triggers COBRA coverage?

The following are qualifying events: the death of the covered employee; a covered employee’s termination of employment or reduction of the hours of employment; the covered employee becoming entitled to Medicare; divorce or legal separation from the covered employee; or a dependent child ceasing to be a dependent under …

What happens when you no longer qualify for Cobra?

A1. If you become eligible for other group health coverage (such as coverage from a new job) or Medicare coverage, you’re no longer eligible for the COBRA subsidy. You must notify the health plan that’s been providing your COBRA coverage that you’re no longer eligible for the subsidy. This notification must be made in writing.

What do you need to know about COBRA continuation?

To be eligible for COBRA coverage, you must have been enrolled in your employer’s health plan when you worked and the health plan must continue to be in effect for active employees. COBRA continuation coverage is available upon the occurrence of a qualifying event that would, except for the

When does Cobra coverage end for current employees?

Essentially, the insurance coverage for current employees/beneficiaries remains exactly the same for ex-employees/beneficiaries under COBRA. From the date of the qualifying event, COBRA coverage extends for a limited period of 18 or 36 months, depending upon the applicable scenarios.

Is the cost of Cobra the same as other health insurance?

In essence, the cost remains the same but has to be borne completely by the individual with no contribution from the employer. COBRA may still be less expensive than other individual health coverage plans.

When do you become entitled to COBRA continuation?

If you become entitled to elect COBRA continuation coverage when you otherwise would lose group health coverage under a group health plan, you should consider all options you may have to get other health coverage before you make your decision.

When do I Lose my COBRA health plan?

Within 30 days of losing COBRA coverage, for coverage through another group health plan, or Within 60 days before or after losing COBRA coverage, for coverage through

Do you have to pay Cobra retroactive to day 1?

However, even if you enroll on Day 60, your coverage is retroactive to Day 1. Of course, you’ll have to pay the retroactive premiums for that period. Thus, you could technically waive your COBRA coverage initially, and then wait to see if you incur any medical bills.

Do you have to be an active employee to qualify for Cobra?

To be eligible for COBRA coverage, you must have been enrolled in your employer’s health plan when you worked and the health plan must continue to be in effect for active employees. COBRA