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Patrick, Esq.
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Category: California Employment Law
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If after being laid-off and I sign up for COBRA health insurance, what

Resolved Question:

If after being laid-off and I sign up for COBRA health insurance,
what happens if the company I worked for goes out of business?

Can I continue to receive the COBRA?
Submitted: 4 years ago.
Category: California Employment Law
Expert:  Patrick, Esq. replied 4 years ago.
Hello and thank you for entrusting me to answer your question. My goal is to answer your question completely and thoroughly and to provide excellent service.

I am so sorry to hear that you have been laid off and that your former employer is now going out of business.

I am afraid that I do not have good news to tell you. An employer is only obligated to provide COBRA coverage if it continues to offer health care coverage to its other employees. An employer who is going out of business is quite certainly terminating health care coverage for all employees, since it will no longer have any employees, and thus, the health coverage of an employee in your circumstance will no longer continue either.

Directly from the Department of Labor "FAQ For Employees":

"If there is no longer a health plan, there is no COBRA coverage available. If, however, there is another plan offered by the company, you may be covered under that plan."

I realize that the law is not in your favor here and I am truly sorry to have to deliver bad news. Nonetheless, I trust that you will appreciate an accurate explanation of the law and realize that it would be unprofessional of me and unfair to you to provide you with anything less.

I sincerely XXXXX XXXXX this information helps you and I wish you the best.

If you do not have any further concerns, I would be very grateful if you would give my answer a positive rating and click submit, as this is the only way I will receive credit for assisting you. If you have any additional concerns that you would like me to address, please feel free to let me know by hitting the REPLY or CONTINUE CONVERSATION button and I will be more than happy to continue assisting you.

Finally, please bear in mind that none of the above constitutes legal advice nor is any attorney client relationship created between us.

Thank you and very kindest regards.
Customer: replied 4 years ago.

thanks,one more thing, if I have a pre-existing condition


does an insurance company have to offer me a plan (even if it is expensive)

or am I basically SOL without any leverage if my current ex-employer goes




Expert:  Patrick, Esq. replied 4 years ago.

Thank you very much for your reply. I would be very happy to answer your followup question, but we are straying now into an area of health care law more so than employment law, and I am afraid I do not have the expertise to confidently provide you with an answer.

I see that you are a subscription customer, and so I would encourage you to ask this question in the general "Legal" category, where you will be more likely to find an attorney who specializes in health care law. There will be no charge for the additional question.

While I cannot respond authoritatively to your followup question, I am aware that Obama's new health care legislation, which is just now beginning to take effect, does place limitations on a health care insurer's ability to refuse coverage on the basis of pre-existing conditions, so I would hold out hope with regard to finding new coverage.

Again, I sincerely XXXXX XXXXX this information helps you and I wish you the best.

Kindest regards.
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