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COBRA in an asset sale

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Posted by P. S. on December 06, 2008 at 16:19:01:

On Nov. 5th the company my husband worked for was sold. (an asset sale) He was called that night and told not to go to work because the new company had decided not to carry some employees over. He was told that the former owner would get back to him about COBRA.

On Nov. 19th the former owner came to our house and told us that COBRA would not be available because the group policy from the original company no longer existed. We were also told to purchase private insurance as our present coverage would end on Dec. 1st.

I purchased insurance for my husband and son but I however am a 3 year colon cancer survivor and can not find private insurance.

My husband contacted the new company and asked if we could "add on" to their policy and assume the COBRA payments until he secures new employment. They were unwilling to do so.

I contacted my Senator and he told me to apply for HIPPA state insurance. HIPPA requires a letter from both the old and new companies stating that I am not eligible for COBRA. The old company gave me the letter right away. The new company is refusing to do it. They will not put anything in writing.

My question:
Is this legal? I know it's not moral, but do you think we have an actionable cause here?

Thanks much.

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Re: COBRA in an asset sale Agent 11:28:41 12/16/2008 (0)

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Comments:
: On Nov. 5th the company my husband worked for was sold. (an asset sale) He was called that night and told not to go to work because the new company had decided not to carry some employees over. He was told that the former owner would get back to him about COBRA. : On Nov. 19th the former owner came to our house and told us that COBRA would not be available because the group policy from the original company no longer existed. We were also told to purchase private insurance as our present coverage would end on Dec. 1st. : I purchased insurance for my husband and son but I however am a 3 year colon cancer survivor and can not find private insurance. : My husband contacted the new company and asked if we could "add on" to their policy and assume the COBRA payments until he secures new employment. They were unwilling to do so. : I contacted my Senator and he told me to apply for HIPPA state insurance. HIPPA requires a letter from both the old and new companies stating that I am not eligible for COBRA. The old company gave me the letter right away. The new company is refusing to do it. They will not put anything in writing. : My question: : Is this legal? I know it's not moral, but do you think we have an actionable cause here? : Thanks much.

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