What happens when you find out you have no Cobra because your company

[Guest mail 4Lynn]

If you are covered by Cobra insurance due to your spouse retiring for 36 months and a year later the plant closes.

Now, you find out that you have not had coverage since end of Feb. however, have paid monthly premiums for Feb., March, April and May to Cobra compliance thinking that you have had coverage all this time. You have not been notified by either the plant (company) or the insurance company that you have not had coverage. Where do I stand?

I thought that was why there was a Continuation of Benefits Reform Act to make sure that people in this situation would have insurance provided. Can anyone tell, where I can get or read a copy of what exactly this Act states and how it works. Can anyone help me with this matter.

Respond to mail 4Lynn

[jeanine]

Unfortunately, how this Act works can not be stated simply, however as a start you may want to look at the insure.com website that has a simple explanation of COBRA. COBRA provides that some individuals can continue coverage under their former group coverage. If the plant closed, and there is no group plan left, there is nothing to continue coverage under. But there still may be hope for you. The very first thing you need to do is find out whether the employer provided health benefits under an insurance plan or if they self-funded benefits. Many large employers self-fund--this means that they pay for benefits out of assets or a trust instead of buying an insurance policy from an insurance company. Even if you had an insurance card with an insurance company name on it, it may not be insurance but just administration of your company's self-funded plan. Look through all health plan materials you have from the company. Somewhere in there it must tell you if benefits are provided under an insurance policy or if the plan is self-funded. If benefits were provided under an insurance company, you may have some relief available to you under your state's insurance laws. Contact your state's Department of Insurance. If it was self-funded, unless there was a trust or if the closing was due to bankruptcy, you have very little recourse. Let us know more facts as you get them.

[Steve72]

You may also want to contact the Department of Labor. Even if there's no insurance coverage, they may be able to help you get your premiums refunded. A small consolation, I know, but it's something.

Just a side note: It would make far too much sense for COBRA to stand for "Continuation Of Benefits Reform Act". In fact, it means "Consolidated Omnibus Reconciliation Act".

[Guest rmg]

Another avenue to explore is if the company has sister companies (common ownership) that have group plans. If so, they might be liable for COBRA continuation of the people covered at your plant. Again, the DOL can help you if the company has other plans.

Good luck