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Can an employer continue to sponsor a health plan after all employees are terminated for the purpose of offering COBRA coverage?
Your question is ambiguous. Do you really mean that the employees were terminated for the purpose of offering COBRA coverage? That seems like a strange reason to terminate employees.
Or do you mean "Can an employer continue to sponsor a health plan for the purpose of offering COBRA coverage after all employees are terminated?" If so, the answer is "yes", if the plan is self-funded, and "no", if the plan is offered through an insurance company, because the insurance company will have to offer the COBRA coverage thereafter.
Or do you mean "Can an employer continue to sponsor a health plan for the purpose of offering COBRA coverage after all employees are terminated?" If so, the answer is "yes", if the plan is self-funded, and "no", if the plan is offered through an insurance company, because the insurance company will have to offer the COBRA coverage thereafter.
QUOTE (vebaguru @ Mar 17 2009, 05:58 PM) 
Your question is ambiguous. Do you really mean that the employees were terminated for the purpose of offering COBRA coverage? That seems like a strange reason to terminate employees.
Or do you mean "Can an employer continue to sponsor a health plan for the purpose of offering COBRA coverage after all employees are terminated?" If so, the answer is "yes", if the plan is self-funded, and "no", if the plan is offered through an insurance company, because the insurance company will have to offer the COBRA coverage thereafter.
Or do you mean "Can an employer continue to sponsor a health plan for the purpose of offering COBRA coverage after all employees are terminated?" If so, the answer is "yes", if the plan is self-funded, and "no", if the plan is offered through an insurance company, because the insurance company will have to offer the COBRA coverage thereafter.
I meant the latter. Thanks!
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