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What will happen if my employer goes out of business?
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Q:   I am already paying COBRA to a past employer. I have a hypothetical question regarding if that employer went out of business what would their current employee’s rights be in retaining their health coverage/group plan? Also would those apply to me considering I’m a past employee but still on their group insurance plan through COBRA? I’ve received all different answers to this scenario and was told this would be the best way to get the most accurate information/answer.

 

A:  If your employer went out of business and they no longer kept a group health plan active, the current employees would not be eligible for COBRA.   The ex-employees that are on COBRA when the business closes will lose their COBRA coverage. 

 


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