COBRA Continuation Question

kspaulding

Company A is purchased by Company X and Company X hires Company A's employees but continues health coverage for ex- Company A employees under the original Company A health plan. If Company X then ceases the Company A health planseveral months later at the same time it lays off these ex-Company A employees, is Company X required to provide COBRA coverage under itsown health plan that these ex-Company A employees were never covered on?

NaeNae55

Welcome kspaulding!

If the employees are otherwise eligible for Company X benefits and the Company X health plan, then they would get be eligible for that plan. You don't give a lot of information, but it doesn't sound like that is the case. Even if they were eligible for regular coverage on Company X plan, they would not be eligible for COBRA coverage on the X plan unless they actually had coverage in the first place.

If a health plan is terminated there is no COBRA coverage.

I am sorry for I suspect this is not what you wanted to hear. It sounds like Company X kept the A plan for just this situation.

Good luck!
Nae

Sharon McKnight SPHR

[quote=kspaulding;724670]Company A is purchased by Company X and Company X hires Company A's employees but continues health coverage for ex- Company A employees under the original Company A health plan. If Company X then ceases the Company A health plan several months later at the same time it lays off these ex-Company A employees, is Company X required to provide COBRA coverage under its own health plan that these ex-Company A employees were never covered on?[/quote]


Your first post! Welcome to the Forum. :welcome:

Sharon