If a company closes it's doors, how does the health insurance work? Does it depend on the insurance company?

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Do you immediately lose the coverage?

Depending on the timing of your layoff and the timing of the closing of the entire company, it sounds like you may or may not have the option of continuing your coverage under COBRA. COBRA is a government program that allows laid off workers or their dependents to temporarily continue the health insurance plan they had through an employer, at their own cost. Ask your employer if COBRA coverage is an option for you.

Itâ€™s worth noting, however, that COBRA coverage may not always be the best option for everyone. Since continuing your coverage through COBRA requires that you pay for the full monthly premium on your own (versus your employer paying for a large part of it), itâ€™s possible you may find that COBRA costs more than you are willing, or able, to pay.

If you are relatively healthy, not currently pregnant, and donâ€™t have a pre-existing medical condition, you might want to consider purchasing your own health insurance plan. You may be able to find more affordable health insurance options that way. If you work through a licensed agent (like the company I work for, eHealthInsurance.com) you can compare rates and benefits from individual and family health plans in your area to find a match that meets your needs and budget. If you expect to have a new job with employer-sponsored coverage in the near future, you may also want to take a look at short-term health insurance as another alternative.

No matter what you do, be sure to talk with a licensed agent in your area or through eHealthInsurance.com to make sure that you understand your options and find a solution that works best for you. Also, because it offers important protections donâ€™t cancel or decline COBRA coverage until you get confirmation that you have coverage under another policy.

-Katie Bryant, licensed agent

AAAAHHHH hahaha.Don't you remember Enron.No job,no 401K,no nothing.

The company will terminate its group health policy. Which means your coverage will terminate. Only the company can give you the effective date.

The group health plan will end when the paid premiums have been used. I would immediately check with your insurance company to make sure the policy is still inforce and they can also let you know how you can continue your coverage. If your employer is closing due to financial reasons I would be concerned that they may not be paying the last few insurance bills.

Most likely, they've not paid the insurance premiums for that month anyway, and the health insurance is already cancelled for nonpayment of premium.

If you are referring the insurance company going out of the business, usually the state has the system to take care of the clients for certain period of time. If you have a health insurance with Blue Cross, Blue Shield,Kaiser Permanate or Aetna, the chances of those companies last long is much higher than other insurance company.

If you are referring a regular company going out of business like Enron, yeah.. you get nothing..

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