No Employees

[Randy Watson]

Can an employer continue to sponsor a health plan after all employees are terminated for the purpose of offering COBRA coverage?

[Ron Snyder]

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.

[Randy Watson]

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.

I meant the latter. Thanks!