BAS Blog

Question of the Week

Written by BAS | Jul 3, 2014 12:59:00 PM

Q.  An employer is in bankruptcy.  They originally had 1000 employees.  Now they have 25 employees.  They are getting a new health plan to offer to the 25 employees.  What happens to the continuants on COBRA? 

A.  Since the employer is still offering a group health plan, it should offer that plan to the COBRA continuants.  Bankruptcy does not undo a continuant’s right to COBRA continuation coverage.