Q.- If an employer is going out of business and COBRA will not be offered, does the employer have to send an unavailability of coverage notice?
A.- Maybe not. If a group health plan denies an individual’s request for continuation coverage or extension of coverage, the plan must give the denied individual a notice of unavailability of continuation coverage within 14 days after the request is received. If the company goes out of business and does not offer coverage, a notice technically does not have to be provided if COBRA is not offered. If a former employee asks for the continuation coverage, the company would have to provide notice explaining why the request for coverage is not being granted.