I understand that my husband might qualify for CalCobra because he is going into disability and his company will stop paying for his health insurance and the other employees as well. So my question to you is: Even if the company go out of business in less than 6 months, does my husband will continue receiving health care through Cal-cobra? My husband has a pre-existing case that no insurance company would like to provide care for him. I know that when he gets into disability and the company stop paying for his health insurance, we can apply within 60 days to get cal-cobra, but my concern is if his company go out of business, what will happen to my husband health care insurance? Please help me. I am in need of help. Thanks

Andrea:

Hmm, we are getting a lot of questions recently about companies hitting the bankrupt button. If the company goes out of business, cobra may no longer apply, depending on if the plan survives. But if the plan is dissolved, there is no group health plan to extend.

COBRA Employer Bankruptcy

There are some alternatives, like calling your insurer and asking about a conversion policy from the group health plan. Call the number on the back of your insurance card.

Usually the company will be parted out and many of the employees terminated. The assets sold. But not always. You are more likley than not screwed, but if they want to keep the group health in place (a pain for them) than it's possible you can go on COBRA. You jsut have to wait, and check with other employees that stay with the company to find out the status of their coverage.