|Question: If my employer goes out of business and discontinues its health insurance plan, am I still eligible for COBRA benefits?|
Probably not. The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows individuals who lose their jobs to continue group health-care coverage under their employer's plans. However, if your company goes out of business and no longer maintains a group health insurance policy, then no COBRA coverage is available because there is no group plan to attach it to. (There's an exception if you're a union employee covered by a collective bargaining agreement, if the agreement provides for a medical plan.)
If you're not eligible for COBRA coverage, don't despair--you may still be able to obtain health insurance coverage. If you don't find a new job right away, you may be able to purchase low-cost or no-cost health insurance coverage through your state's unemployment office. When you do find a new job, your employer may provide health insurance. You may even be eligible for coverage through a family member's employer-sponsored health plan. Or, you might look into purchasing an individual health insurance plan.