My Employer Sold The Business, Do I Qualify For COBRA?

The business I work for was sold & the new buyer has offered a new health plan. Do the employees have the option of electing COBRA on the old plan or because they our offered a plan with a new carrier they don’t qualify?

COBRA is a continuation of a group health policy for an employee or their spouse and dependent children. You are not eligible for COBRA when you are still employed and your employer’s health plan changes from one insurance carrier to another. Your group health policy was replaced it wasn’t lost.

When The Company Goes Out Of Business

Unfortunately, if your job ends because the company went out of business and shut down, then there isn’t a group-health plan for you to continue on COBRA with. You will need to find new marketplace insurance or a temporary health plan until your next major medical work insurance starts.