Regardless of whether a company files bankruptcy COBRA is a Federal provision. COBRA is handled by a separate company. I know because I've been through it with another company that went bankrupt. Unfortunately COBRA premiums are very expensive.
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Just some info gleaned online about COBRA for you guys: If a company is restructuring or filing bankruptcy, the health plan may stay intact for some time, and COBRA may be available for that period. However, if the business closes its doors immediately, the health plan often ends immediately. COBRA is only available through the date the health plan premium is paid.
I feel pretty bad for the person who needs it NOW. As usual, it's Joe Public who gets the brown end of the stick.
When a company goes bankrupt, the health insurance plan is shut down and coverage no longer exists. It’s just that simple.
The stock is now only worth two dollars a share, so yes, your health insurance and any chance at a severance are in danger.
I know how much it sucks for the FTs but it's always sucked for the PTs at BBBY. And that is hardly a revenge note. We were all just one level down! That is kinda the sad part about posts like the PTs not coming in. There is nothing to lose when you have nothing. I wish you the best.
If a company declares bankruptcy, they can choose to end medical benefits for their employees, which also means there would be no Cobra.
Original Poster,
Sadly, your position is possibly in danger… If you should find yourself without benefits, check out the healthcare.gov site to see what options are available to you on the Marketplace. There is also a link to details about the Affordable Care Act that will give you information about what protections you have (for example - insurance companies can’t hold pre-existing conditions against you, etc.) This is a difficult time and change is not easy, but there are options.
Everything is in danger.
I can't tell you how badly I need it right now. Losing it would be devastating.