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

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