Terms of Use
The "No Plan, No COBRA" Rule If your employer goes out of business and cancels health coverage for all active employees, COBRA eligibility ends immediately. You cannot continue a plan that no longer exists.
Exceptions to the Rule
Parent Companies If the employer is part of a larger group that still has an active plan, you can likely transfer your COBRA to that plan.
Successor Owners If the business was sold, the new owner may be legally required to provide you with COBRA options.
Your Backup: The Marketplace Losing coverage due to a company closing is a "Qualifying Life Event." You have 60 days to enroll in a new plan via Healthcare.gov, often with lower premiums than COBRA through federal subsidies.
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