COBRA coverage when subsidiary goes out of business

[Guest tonjer]

We have a situation where a subsidiary is going out of business. The controlled group is simply the parent and sub. Therefore, must the employees of the subsidiary be overed COBRA coverage based on the health benefits of the parent? For that matter, what about when there are numerous companies in the controlled group, must coverage be provided under any other plan sponsored by the controlled group? If so, please let me know the authority.

Thank you!

[mroberts]

In this example, it sounds like the employees would be eligible for COBRA since the policy is going to still be in existence. Nonetheless, I would still read the policy/contract for your insurance carriers to see how the group was set up.