Texas Cobra benefits taken away

[Larry4Jesus]

Around the early part of November 2004 I was approached by one of the two owners of the company I was working for (a Texas based company) and enlightened on some changes that were imminent and would be taking place over the next couple of months. At the time I was making a salary of xx,xxx and all of my insurance, for my entire family (medical, dental) was being paid at 100% by the company. I was the only person that this was being done for, (other than the owners) as all other employees were only being paid at 90% for the employee only. I was told at that time by one of the owners that the company would be changing hands and offered a very lucrative separation agreement by that owner. Part of the agreement was that I would be terminated in mid November, however the owner offered in the separation agreement, payment of all my cobra insurance costs by the company through January 2005, as well as my salary through that time. I signed the agreement and we parted ways at or around November 15, 2004. During the months of December and January I and my family visited the dentist and doctor for regular checkups as well as a bit of extensive dental work done during the month of January. Everything seemed to have worked out well, however sometime in May I received notice from the dental insurance company that my claims submitted for Dec/Jan were not being paid. I contacted the insurance company to learn that my dental insurance had been cancelled with an effective date of November 30, 2004 (however the person did not cancel the insurance until the first part of May retro back to November). As a result I am out several hundred dollars in dental bills. I have contacted both the current company manager as well as the prior owner and both have said they have no responsibility for the actions that occurred. In addition I have never received any letters from anyone offering me a continuation of COBRA coverage, which my current employer would have been more than happy to pick up for the time lapse between January 31 and my current plans effective date. I have researched this and feel that as a result of my research wrongdoing has occurred, however my question to you is first do I seek out a lawyer to assist me with a remedy, or is this something that would be better handled by the department of labor. Secondly, Do I proceed against the prior owner, or do I seek out these issues against the current management.
I would like to take immediate action against both the violation of the separation agreement, as well as the failure to notify me of the opportunity of cobra continuation, so your expedited response would be greatly appreciated.
One final note the actual change of hands from prior owner to new owner occurred on January 12, 2005. Thanks you for your assistance. I look forward to any assistance you can offer regarding this situation. Thanks.

[LConnell]

On the issue of an employer who no longer exists, the question is whether it is still responsible for COBRA. It is clear that if the company goes out of business and, therefore it does not maintain a helath plan (or, in the case where it continues to exist and and yet discontinues its insurance plan), there are no obligations for COBRA. However, in your case, the question is whether the acquisition represents an acquisition of the first company, including its assets and liabilities or just the purchase of its assets.

I don't know the answer to that question. You may wish to consult with an attorney who can delve more deeply into the nature of the acquisition.