COBRA and Employer Bankruptcy

[Guest lakelyc]

My former employer through which I receive COBRA benefits has declared Ch 11 Bankruptcy. I have a COBRA premium due. Do I have coverage as a result of the CH11? Should I forget the COBRA payment and get individual insurance?

Perplexed

[mroberts]

Is the company terminating its health plan? If not, then COBRA will still need to be offered. I would recommend taking the COBRA plan since it should be less expensive than a comparable individual plan. If the company terminates its health plan down the road while you are on COBRA, then go the individual policy route.

[Kirk Maldonado]

mroberts:

COBRA is generally, but not always, less expensive than individual coverage. I've had a few clients over the years that had such bad claims experience that COBRA was more than individual coverage.