In most cases, yes, your COBRA will end when the company you previously worked for ceases to eist. As you probably know, COBRA is a continuation of your previous group health plan. A group health plan is tied to the company to whom that coverage was issued. If that company ceases to eist, either because they went out of business, or were bought by a different company, so does the group health plan, as well as coverage for any e-employees that are currently insured under COBRA continuation. An eception to this rule would be if the company has negotiated with your current insurance carrier to transfer the eisting policy to the new corporation. The insurance carrier is not obligated to do so, and will most likely request that a new application for Small Business be submitted. When this happens, the previous group plan terminates. To make certain how the sale of this company will affect your current COBRA coverage, you should contact the insurance carrier or COBRA administrator directly. They would be aware of any special provisions in this transfer that might enable you to remain on COBRA. If you have been covered under this group health plan for at least 18 months, you are eligible for a guaranteed issue individual health plan under federal HIPAA regulations. If you learn that your COBRA is for certain going to terminate, contact us again or reply to this blog posting and we can assist you in understanding your HIPAA rights and where you can go to find guaranteed issue coverage.
Answered: May 02, 2010