COBRA and bankruptcy with your employer....

I am currently out on disability.  Have had some rough times of it so far.  In week 18.  I just got word that my employer may be filing bankrupcty.  How will this affect me?  I am told there would be no cobra offered it they go chapter 7.  I have BCBS.  Will they offer individual policy with no pre-existing?  This really has me worried.

Advice please!

Jean

[spcecst2]

I am no expert but I believe that cobra continues unless your company drops all coverage, I believe that health insurance can be exempt from the process or maybe the trustee would disburse payment!!!!! So unless they just completly stop health coverage during the process, you should be fine!!!!! As long as you don't have a 60 day lapse between policies you should also be fine on pre-exisitng, however there may be some state laws that come into play with that!!!!!!!!!!!!!! And when they go with pre-existing there is a time period for how long!!!!!!!!!!!!!!!

[spcecst2]

I may be wrong cause I was thinking chapter 11 and not 7, what they told you may be right for chapter 7, you lose your cobra!!!!

[jt57]

yeah.  that's what I'm thinking.  Hopefully, BCBS of NC will just let me convert to individual policy.  

[fretboard]

I think you should Google COBRA.  Second or third link is a Dept. of Labor link and should answer most of your questions.  You still would be given the option to continue your policy coverage, but the price may be staggering.  Of course you would really have to know because, you would want to make sure you have plenty of prescriptions to cover your tx throughout, and that would be the minimum of your concerns.  good luck

[spcecst2]

http://www.dol.gov/ebsa/newsroom/fsbankruptcy.html