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What happens to health insurance if a company closes?

Asked by Anonymous Oct 12, 2026 1 views 1 answers
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Answered Oct 13, 2026
When a company closes or ceases operations, employee group health insurance policies are typically terminated at the end of the final active month or immediate cessation date. Under federal laws like COBRA (Consolidated Omnibus Budget Reconciliation Act) in the United States, eligible employees usually retain the legal right to temporarily continue their group health coverage for up to 18 months, though the former employee must assume 100% of the total monthly premium cost.
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