July 13, 2011


Our guest asks:

What health insurance options do I have if my company goes out of business?

OnlineAdviser responds:

Your problem is has been shared with many during this recession. The majority of Americans get their health insurance through an employer-sponsored plan and the employer may terminate that coverage at any time for any reason. If the company has 20 or more regular employees then the employer or their insurer is required to continue to offer the health insurance to you at a price similar to what the employer paid. But since you employer, like the majority of U.S. companies, has less than 20 employers you are not eligible for COBRA coverage.

The most likely alternatives are individual conversion insurance (where you change to an individual insurance plan with your current insurance company) or short term medical insurance (a lower cost option with a new insurance plan). See www.COBRAplan.com for an overview of these and additional options.

 

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