Company cancels health plan — what next?

Things are getting skippy at my job.  There is very little work, and I think the company may go out of business.  Can an employer in Texas cancel your health plan and not offer you COBRA coverage?

Watching The Exits

Dear Watching The Exits,

Yes, there are several different ways this could happen.

  • The employer has discontinued the plan entirely for all employees.
  • The company has fewer than 20 employees
  • The company is a church.
  • You were fired from the job for gross misconduct.

The first scenario might apply, in your case: the company goes out of business, leaving no plan that can be continued.  The insurer may be willing to offer you a discount on a non-group (or “individual”) plan, if that happens.

In the meantime, do what you can to help the company succeed and keep an eye peeled for your next job.

Recommend this article
Linda Riddell

About Linda Riddell

A published author and health policy analyst with 25 years’ experience, Linda Riddell's goal is to alleviate the widespread ailment of not knowing what your health plan can do for you.