COBRA Insurance and BK Company

[David1051]

I was let go from a company and in my severance agreement they are picking up my medical/dental insurance for 6 months. After that point I could switch to a COBRA and pay myself.

Now I am being told that the company may stop making payments to the insurance company and may go BK. Until I have a new job, I must keep medical insurance. My understanding is if I move to a Cobra it will do no good because it will colapse if the main policy does. What can I do to make sure I never have a break in my insurance?

Thanks!!

 

[cbg]

Unfortunately, it is true that if the company ceases to offer insurance to active employees, or goes out of business and doesn't have any active employees, the COBRA ceases to exist also. In some states you have a right to convert your existing group policy to an individual insurance policy. Otherwise, about your only option would be to buy an individual policy outright.