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COBRA questions (MA) Massachusetts

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  • COBRA questions (MA) Massachusetts

    These are two hypothetical questions... neither has come to pass but I fear that one or both may. Not sure this is MA specific, but it seemed the correct place to post? If it belongs elsewhere please let me know.

    (1) If a company goes out of business are they still obligated to provide COBRA for its employees? That is to say, if the company I work at lays me off and closes (either at that time, or soon thereafter), am I eligible for COBRA? And will it effect the duration?

    (2) If I have COBRA and take a new part-time job (that does not offer benefits) can I keep using my original COBRA until it runs out?

    Thanks in advance,

  • #2
    1.) If the company goes out of business, chances are excellent that the health plan will be cancelled. They can't have an insurance plan with no active employees on it. If that comes to pass, there cannot be any COBRA because there is no plan to continue. This is true in all states. In fact, the COBRA paperwork specifically states (or should) that COBRA coverage will end if the policy is cancelled and not replaced.

    2.) Yes.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.


    • #3
      Thank you for the info -- it makes sense now that you say it, but I hadn't thought about it that way before.