Am I eligible for COBRA if my company closed or went bankrupt and there is no health plan? What about COBRA alternatives?

If there is no longer an employer-sponsored health plan, there is no COBRA coverage available. Employers are not required to maintain a health plan and COBRA only applies to employers who elect to provide this benefit.

In some cases union members who are covered by a collective bargaining agreement that provides for a medical plan may continue to be covered even if an employer goes out of business.

COBRA alternatives are available and are often a useful option when an employer goes out of business unexpectedly leaving employees financially unprepared.

revised 3/3/09

(back to index of frequently asked questions about COBRA coverage) provides help with COBRA issues

COBRA continuation coverage may provide temporary protection when changing jobs, going through a divorce or negotiating other life transitions. Choosing the right health insurance is crucial to protect your health and financial security.