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  3. Employer Goes Out Of Business

Can COBRA End Early If My Employer Is Going Out Of Business?

I am on COBRA right now since February. I went out on disability due to cancer and I pay the premiums in full myself. My previous employer sold out and the business will be closed next month. I am told I can have COBRA util then. I am also told “No Company– No COBRA”. Is this true?

Because COBRA is simply the continuation of the same coverage you had through a previous employer, if the employer goes out of business or drops their group health plan, then there is no group health plan to offer to you.

At that point, COBRA insurance for you would end, even if you hadn’t used the full 18 months of coverage.

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