Friday, November 12, 2010

Can health insurance company drop you if you making COBRA payments on time?

My sister is in a nursing home. I have been paying her COBRA since December. The nursing home called and "warned" us to find a medicaid facility because her health insurance will probably drop her. Why?
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Is her former employer going out of business and/or dropping their insurance plan? If the employer's group insurance plan no longer exists, then neither does COBRA. COBRA = continuation coverage of the (former) employer's group plan. If there is no plan, then there is nothing to continue.
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