How long do dependents COBRA coverage last when the employee is eligible for Medicare?
When a company is merged or acquired which company is responsible for COBRA? If the acquisition is a stock purchase there shouldn’t be any triggering event. The buyer’s group would be the new employer. Any subsequent terminations would be treated as COBRA under the continuing (buyer’s) entity. If an asset purchase the seller, IF MAINTAINING A HEALTH PLAN, would assume the COBRA responsibility. If the seller does not maintain a health plan then the COBRA responsibility technically ends unless the buyer has expressly assumed this responsibility. Additionally while these responsibilities can be dictated by contract between the corporate parties, if the obligated party defaults the COBRA responsibilities rest with the other party. The IRS has made it quite clear that employees will not suffer under these circumstances.
Related Questions
- Are Domestic Partners who are covered as dependents eligible for continuation coverage under federal COBRA and Maine "mini-COBRA" laws?
- Would an employee who declined COBRA coverage prior to the March 1 effective date be eligible for the subsidy?
- How long do dependents COBRA coverage last when the employee is eligible for Medicare?
