Cobra Question

[kaneohe]

asking for a still working friend............

If he leaves this company (XXX), enrolls in the Fed Cobra and then later in California COBRA), he believes he can get 18 mos. of Fed Cobra and then
18 more mos. of California Cobra

1) if the company keeps the XXX name and the company structure (likely his Cobra will continue).

But what happens if (either before or after he leaves XXX)
2) if the company name is changed to a new name of "ABCD"? will his Cobra still be valid whether or not a new insurance program is established or with the old program?
3) if XXX is being absorbed to become a division of a bigger company, and joins their insurance program, will his Cobra still be valid?

Does it matter if the parent larger company is foreign? Or can they parent larger company set up so that the acquiring company looks American?

If you have any links, that would also be useful.

 

[teejayevans]

I think the only way out of COBRA is to file for bankruptcy. Name changes and being acquired is not going to do it, the original corporation and its obligations still exist.
TJ

 

[dgoldenz]

COBRA only gets terminated if the company stops offering health insurance benefits altogether.

 

[Animorph]

COBRA only gets terminated if the company stops offering health insurance benefits altogether.

Which could easily happen in 2014 if Obamacare survives. Sounds like plenty of companies are planning to exit health insurance plans at that time. On the other hand, that should also mean there will be COBRA-alternatives that will take you with pre-existing conditions, let you select the amount of coverage you'd like, and offer subsidies that should make it cheaper than COBRA. I hope.